AUDUSD – bear-trendline continues to cap recovery attempts
Early Friday’s action remains in red as recovery leg from 0.7530 shows initial signs of stall.
Falling trendline off 0.8102 (20 Sep high) marks strong barrier (reinforced by 20SMA) and continues to cap corrective attempts.
Overbought slow stochastic on daily chart adds to growing downside risk.
Today’s close in red will be bearish signal with close below 10SMA at 0.7596 (also Fibo 38.2% of 0.7530/0.7638 recovery leg) needed to confirm and turn near-term bias lower.
Conversely, firm break above bear-trendline (currently at 0.7628) would generate bullish signal for extension of recovery leg towards 0.7665 (Fibo 38.2% of 0.7883/0.7530 bear-leg) and 0.7707 (daily Kijun-sen) in extension.
Res: 0.7628; 0.7665; 0.7707; 0.7729
Sup: 0.7596; 0.7579; 0.7555; 0.7530