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FxWirePro: AUD/USD price action dips back into cloud, falls till 0.7176 likely

Markets are banking on a Fed hike for the first time in almost a decade, while the RBA is expected to remain on hold and unlikely to make any adjustments to their outlook until at least February of next year - this exposes the downside in the pair

  • AUD/USD pair fell yesterday on disappointing Australian Capex data which showed private capital expenditures contracted by another 9.2% in Q3, after shrinking 3.3% in the previous quarter
     
  • On the day, the pair trades a modest 0.7214/33 range in Asia and was last at 0.7223 in holiday thinned trading (last nights US Thanksgiving holiday)
     
  • Daily price action has dipped back inside the daily cloud. Caution advised as slow stochs are rolling over from overbought zone and also Wed's failure at 0.7283 upped downside risks
     
  • Support remains at the overnight low (0.7210) and further below at daily Tenkan by 0.7176, while topside looks capped at 0.7278 (Trendline resistance)

Good to sell rallies around 0.7245, SL: 0.7280, TP: 0.7175

Resistance Levels:

R1: 0.7278 (Trendline resistance)

R2: 0.7283 (Daily High Nov 25)

R3: 0.7297 (Daily High Oct 23)

Support Levels: 

S1: 0.7210 (Nov 26 lows)

S2: 0.7199 (100 DMA)

S3: 0.7189 (10 DMA)

 

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