- AUD/USD failed to break below 23.6% Fibo on Thursday's trade and price action is struggling at 0.80 handle in the Asian session today.
- The pair is in the red for 5th straight session, and upside remains capped below 5-DMA.
- AUD/USD extends decline driven by broad-based US dollar rebound, as markets cover USD shorts ahead of the US NFP report.
- Technical studies support weakness, Stochs and RSI are showing rollover from overbought levels.
- Further, bearish divergence on RSI and Stochs keep scope for further downside.
- Immediate support lies at 20-DMA at 0.7983, break below will accentuate weakness. Scope then for test of 38.2% Fib.
- On the flipside, 5-DMA at 0.8054 is immediate resistance, decisive break above will see minor upside.
- Focus now on key US payrolls and wages data for further impetus.
Support levels - 0.80 (psychological level), 0.7986 (23.6% Fib retrace of 0.7501 to 0.8135 rally)
Resistance levels - 0.8053 (5-DMA), 0.8125 (2017 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-muted-around-5-DMA-bearish-divergence-keeps-scope-for-downside-1124310) has hit all targets.
Recommendation: Book partial profits, trail stop loss to 0.8055. Watch for break below 20-DMA for further weakness, stay short for 0.7955/ 0.79.
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