AUD/USD Resumes its Weakening Trend, Falls Below 0.7400 Level
AUD/USD Resumes its Weakening Trend, Falls Below 0.7400 Level
After a brief recovery on Thursday, the AUD/USD pair on Friday fell sharply below 0.7400 handle ahead of the closely watch US monthly jobs report.
The
pair on Thursday attempted a minor recovery, holding its neck just
above 38.2% Fibonacci retracement level of 0.6827-0.7834 up-move. The
Aussie bulls, however, surrendered on Friday and fell sharply in tandem
with weakness across commodity linked currencies. The sharp drop in
commodity currencies could be attributed to a sharp reversal in crude
oil prices, which is now down by over 4.5% from Thursday's high of
$46.04.
The pair is now trading well below 38.2% Fibonacci
retracement level support and is also sustaining its weakness below
0.7400 mark.
Technical levels to watch
From
current levels, an incremental selling pressure should continue
dragging the pair towards its next major support near 0.7330 confluence
region. This 0.7330 level comprises of 100-day SMA and 50% Fibonacci
retracement level and hence, should the pair fail to hold this strong
support it might turn vulnerable to continue drifting lower in the
near-term.
On the upside, 38.2% Fibonacci retracement level
support break-point near 0.7450 would now turn out to be immediate
resistance level. Even if the pair managed to sustained a bounce back
above this support turned resistance level, any further upside now seems
capped at the very important 0.7500 psychological mark resistance.
