audusd another potential downleg below 0 75007522 1850382017
Since our last analysis dated on 13 April 2017, the AUD/USD had declined as expected below the 0.7590/7610 key short-term pivotal resistance and hit the […]
Since our last analysis dated on 13 April 2017, the AUD/USD had declined as expected below the 0.7590/7610 key short-term pivotal resistance and hit the […]
Since our last analysis dated on 13 April 2017, the AUD/USD had declined as expected below the 0.7590/7610 key short-term pivotal resistance and hit the downside target/support of 0.7475 (printed a low of a low of 0.7455 in yesterday, 26 Apr U.S. session) before a minor rebound occurred to print a current intraday high of 0.7492 in today, 27 Apr Asian session. . Click here for a recap on our previous report.
Interestingly, the recent fall in the AUD/USD came in conflict in terms of direction especially against the major European currencies such as the EUR and GBP which has strengthened against the USD due to on-going election fever in Europe (French presidential election and U.K parliamentary election).
Since mid-April 2017, commodities related currencies such as the AUD, CAD and NZD have started to weaken on back drop of weakening commodities prices. There several factors that are likely to support a further potential decline in these commodities related currencies against the USD in the medium-term (1 to 3 weeks) and its underperformance against the EUR and GBP can continue to persist as well;
Now, let’s us take a look at the latest technical elements on AUD/USD
(Click to enlarge charts)
Intermediate resistance: 0.7500
Pivot (key resistance): 0.7522
Supports: 0.7440/30 & 0.7400/7390
Next resistance: 0.7585/7610
The AUD/USD may see a minor corrective rebound to test the 0.7500 intermediate resistance with a maximum limit set at the 0.7522 short-term pivotal resistance before another potential downleg materialises to target 0.7440/30 and below opens up scope for a further decline towards 0.7400/7390 next.
On the other hand, a clearance above 0.7522 is likely to invalidate the preferred bearish tone to trigger a more pronounced corrective up move towards the 0.7585/7610 medium-term resistance.
Charts are from eSignal
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