AUDUSD – bears are pausing after strong fall on Tuesday
AUDUSD consolidation extends into second consecutive day, with the action so far holding between new 2023 low (0.6357 and broken Fibo 76.4% (0.6403).
Aussie dollar remains under pressure from firm US dollar, helped by better than expected US services PMI (Wednesday) and weekly jobless claims (today), as well as wide expectations that Fed will keep elevated interest rates for some time.
Unchanged RBA’s monetary policy for the third straight month also made Aussie less attractive for investors.
Near-term action remains weighed by Tuesday’s large bearish daily candle (down 1.2% for the day), along with MA’s in full bearish setup and 14-d momentum holding below the centreline, however, oversold stochastic suggests that the pair may hold in extended consolidation before larger bears resume.
Weekly close below cracked Fibo 76.4% of 0.6170/0.7157 (0.6403) would further strengthen negative structure and risk acceleration towards 0.6272 (3 Nov 2022 trough) and 0.6210 21 Oct low) which guard key support at 0.6170 (2022 low).
Daily Tenkan-sen (0.6439) should ideally cap upticks.
Res: 0.6403; 0.6439; 0.6483; 0.6522
Sup: 0.6357; 0.6272; 0.6210; 0.6170