AUD/USD outlook: Is on track for the biggest weekly drop since mid-April

Slobodan Drvenica Windsor Brokers

AUD/USD

Australian dollar continues to trend lower vs its US counterpart for the fifth consecutive day, on track for the biggest weekly loss since the second week of April.

Bears have so far retraced 50% of 0.6575/0.6798 upleg and look for daily close below daily Kijun-sen (0.6691), to reinforce bearish signal.

Daily studies are weakening (fading bullish momentum/price fell below 10/20DMA’s) however, more work to the downside will be required to signal that bears are taking control and validate reversal signal, developing on weekly chart.

Further acceleration lower would look for test of 0.6660 (Fibo 61.8%) and 0.6642 (daily cloud top), while extended upticks should stay below broken Fibo 38.2% level, now acting as solid resistance (0.6713) to keep bears in play.

Res: 0.6700; 0.6713; 0.6741; 0.6764.
Sup: 0.6662; 0.6631; 0.6604; 0.6575.

Interested in AUD/USD technicals? Check out the key levels

1. R3 0.678
2. R2 0.6762
3. R1 0.6734
PP 0.6716
1. S1 0.6688
2. S2 0.667
3. S3 0.6642

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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