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FxWirePro: AUD/USD bounces off lows, but more downside expected

AUD/USD declined to trade in lower range on Monday as strong US wage  data on Friday strengthened the green back against its Australian peer.
 

  • Adding to the Aussie decline was also due to further fall in Crude oil prices, as no outcome came out of Saudi -Venezuela meeting to boost oil prices.
     
  • Currently the pair is making an attempt to test resistance level at 0.9108.
     
  • Technically in the 4 hours chart, the pair has extended its decline below its 20 SMA, whilst the RSI heading south at 47.
     
  • To the upside, the strong resistance can be seen at 0.7176, a break above this level would take the pair towards next resistance level at 0.7242.
     
  • To the downside immediate support can be seen at 0.7043, a break below this level will open the door towards next level at 0.7000.

    Recommendation: Go short around 0.7130, targets 0.7040, 0.6950, SL 0.7200

    Resistance Levels

    R1: 0.7108 (50% Retracement level)

    R2: 0.7176 (61.8% Retracement level)

    R3: 0.7242 (Feb 4th high)

    Support Levels

    S1: 0.7043 (38.2% Retracement level)

    S2: 0.7000 (Psychological levels)

    S3: 0.6960 (Feb 3rd high)

 

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