AUD/USD chart - Trading View
AUD/USD is extending weakness for the 5th straight session, bias lower.
Aussie dented further after RBA’s Lowe showed readiness for a further easy policy if demand disappoints.
Also, Westpac, one of the big four Australia banks, on Wednesday, brought forward the timing of the next RBA rate cut.
Westpac now expects the RBA to deliver a 25 bps rate cut in October compared to the previous forecast in November.
Technical indicators are turning bearish. RSI slips below 50 and Stochs have rolled over from overbought.
50-DMA at 0.6957 is immediate support. Break below cloud will accentuate weakness.
Test of trendline support at 0.6850 likely on break below daily cloud. Bearish invalidation only above 200-DMA.
Support levels - 0.6957 (50-DMA), 0.6927 (cloud base), 0.69
Resistance levels - 0.6994 (21-EMA), 0.7023 (110-EMA), 0.7087 (200-DMA)
Recommendation: Good to go short on upticks, SL: 0.70, TP: 0.6930/ 0.69/ 0.6850
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
