AUD/USD chart on Trading View used for analysis
- AUD/USD extends weakness as Aussie dented by broad-based risk-aversion.
- Technically, the major remains on a major downtrend. Trades in a falling Wedge pattern.
- Focus now turns to the US labor market report later on Friday at 1230GMT for the next direction on the spot.
- Price action is holding support at Wedge base at 0.7155, break below finds next strong support at 0.7145 (May 2016 low).
- On the flip side, 5-DMA is immediate resistance at 0.7258. Breakout at 50-DMA invalidates bearish bias.
Support levels - 0.7155 (Wedge base), 0.7160 (Dec 2016 low), 0.7145 (May 2016 low), 0.71
Resistance levels - 0.7186 (5-DMA), 0.7266 (21-EMA), 0.7348 (55-EMA)
Recommendation: Watch out for decisive break below Wedge base for further weakness. Target 0.7145/ 0.71.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -135.94 (Bearish), while Hourly USD Spot Index was at -1.50999 (Neutral) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
