AUD/USD Drops to Session Lows, Stuck Around 0.7330 Confluence Region
AUD/USD Drops to Session Lows, Stuck Around 0.7330 Confluence Region
The AUD/USD pair reversed from its early Asian session spike to 0.7390 and has now dropped to a fresh session low of 0.7335.
During
Asian session, the pair attempted to build on to its yesterday's
recovery from over two-month low of 0.7300 touched during the session.
The recovery, however, was short-live and the pair is now inching closer
to Tuesday's low support near 0.7300 handle. With little in terms of
any fresh economic triggers, the pair is likely to remain underpinned on
prospects of further rate-cut from the RBA.
From technical
perspective, the pair is hovering around an important confluence region
comprising of 100-day SMA and 50% Fibonacci retracement level of
0.6827-0.7834, 1000-pips of up-move. This confluence region near
0.7330-20 area might now act as pivot point for the pair's near-term
movement.
Technical levels to watch
On a
sustained weakness below 0.7330-20 confluence support, the pair could
extend its weakness below 0.7300 handle towards testing the very
important 200-day SMA support near 0.7260 level. With daily RSI moving
closer to near-term oversold conditions, any further weakness below
200-day SMA support could be limited till 0.7200 round figure mark,
coinciding with 61.8% Fibonacci retracement level.
Meanwhile on
the upside, resistance near day's peak (around 0.7370-80 area), closely
followed by 0.7400 round figure mark, are immediate resistance levels to
watch for. Rebound from an important support and a subsequent strength
above 0.7400 might now trigger some upward momentum for the pair
immediately towards 38.2% Fibonacci retracement level resistance near
0.7450 region.
