Tue, Mar 21, 2023 @ 08:50 GMT
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AUD/USD: Fresh Risk Aversion Deflates Aussie Dollar

The AUDUSD remains in red for the second consecutive day on Wednesday, after recovery attempts were repeatedly capped by daily Tenkan-sen/50% retracement of 0.7028/0.6811 downleg (0.6920) and bears regained full control on renewed risk aversion.

Softer than expected Australian wage growth in Q4 also contributed to Aussie dollar’s fresh weakness.

Revived bears penetrated into rising daily Ichimoku cloud (on track to register the first daily close within the cloud since Nov 28) which was underpinning the action during this period.

Bears cracked key near-term support at 0.6811 (the upper boundary of strong support zone at 0.6811/02, consisting of Feb 17 spike low and 200DMA) which guards nearby pivotal Fibo support at 0.6780 (38.2% of 0.6170/0.7157 uptrend).

Clear break of these levels would open way for deeper correction of 0.6170/0.7157 rally and expose supports at 0.6724/17 (daily cloud base / 100DMA) and 0.6687 (2023 low of Jan 3).

Daily studies maintain strong negative momentum and multiple bear-crosses of MA’s add to downside pressure, although the headwinds at current levels cannot be ruled out.

Upticks should be ideally capped by broken 55DMA (0.6881) to offer better selling opportunities. Only sustained break above daily Tenkan-sen would neutralize bears and generate strong reversal signal on formation of a double-bottom (0.6811).

Res: 0.6864; 0.6894; 0.6920; 0.6945.
Sup: 0.6802; 0.6780; 0.6717; 0.6663.

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://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.

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