Tuesday, 20 March 2018

AUD/USD Looking for new support


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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