Since last Wednesday the AUD/USD pair reversed the trend and
switched into bearish mode.Today the pair extended its decline and marked fresh
new low at 0.7678, where currently is located.
During the early trading hours Aussie topped at 0.7720 being supported by the
upbeat macro data from Australia combined with the latest RBA minutes, reconfirming
that low interest rates support the economy recovery. It will be interesting to
observe the pair during next session as meanwhile the US dollar is consolidating
gains ahead of FOMC meeting tomorrow.
Technically speaking the short term outlook remains bearish. On the four hour
time frame the price is developing well below its bearish moving averages. RSI
and stochastic have settled within extreme negative territories with first staying
directionless around 30, and second aiming even lower.
Last week the pair broke significant support level provided by the 61.8%
Fibonacci retracement of latest bullish run (0.7500 -0.8135) at 0.7750 and this
opened doors for the further decline that currently we are witnessing. From
this point Aussie now is looking for new support and in case drops below the
daily low, such could be found at 0.7630 (Mid December 2017 lows).
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