AUDUSD – limited recovery to precede fresh bears
The Aussie dollar remains in red after Thursday’s bounce from new low at 0.7712 and recovery extension on Friday was capped by broken 100SMA (0.7773).
Lower Asian stocks on fears about the impact of new tariffs on imported metals on Asia, keep the Australian dollar at the back foot.
The pair may hold in extended consolidation before bears re-take full control, as oversold slow stochastic suggest a breather after recent fall, but daily studies in firm bearish setup, along with deteriorating fundamental outlook, keep bearish bias in play.
Close below cracked support at 0.7742 (Fibo 61.8% of 0.7500/0.8135 ascend is needed for fresh bearish signal for extension of pullback from 0.8135 (2018 high, posted on 26 Jan) towards 0.7650 (Fibo 76.4% of 0.7500/0.8135.
Broken 100/200SMA’s (0.7773 and 0.7782) mark strong barrier (reinforced by daily cloud base / falling 10SMA (0.7817) which is expected to limit recovery attempts.
Res: 0.7773; 0.7782; 0.7817; 0.7843
Sup: 0.7742; 0.7712; 0.7700; 0.7650