Technical Analysis

Technical Outlook: AUDUSD – Recovery Remains Limited Despite Thursday’s Close Above 100SMA

Typography

The Aussie remains constructive on Friday and extends recovery rally from 0.7490 low, following Thursday's close above initial barrier at 0.7521 (100SMA) that generated bullish signal. However, bulls were so far capped by daily Tenkan-sen line (0.7540) which was cracked on yesterday's spike to 0.7545, but without sustained break. Bullishly aligned hourly studies are supportive but mixed setup of 4-hr indicators and overall bearish structure on daily chart suggest limited recovery before fresh push lower. Extended upticks should remain capped under 200SMA (0.7548) to keep bears intact. Otherwise, further retracement of 0.7608/0.7489 downleg could be expected. Sustained break above 200SMA would open 0.7565 (Fibo 61.8%, reinforced by falling 20SMA) and confirm reversal on break higher.

Res: 0.7540, 0.7550, 0.7565, 0.7580
Sup: 0.7521, 0.7513, 0.7490, 0.7471

About the Contributor
Windsor Brokers Ltd
Author: Windsor Brokers LtdWebsite: http://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
More from the contributor