Chart AUD/USD Update: Extending May losses
Cautious trade has given way to fresh selling interest
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.7000 | * | congestion | S1 | 0.6833 | ** | 30-31 Mar (m) lows | |
| R3 | 0.6950 | * | break level | S2 | 0.6800 | break level | ||
| R2 | 0.6900 | ** | congestion | S3 | 0.6750 | ** | 61.8% ret of Nov-May rally | |
| R1 | 0.6865 | ** | 30 Jun (m) low | S4 | 0.6700 | ** | congestion |
Asterisk denotes strength of level
14:20 GMT - Cautious trade has given way to fresh selling interest, with the break below the 0.6865 monthly low of 30 June adding weight to sentiment and putting pressure on the 0.6833 monthly lows from 30-31 March. Oversold intraday studies could prompt consolidation around here, before bearish daily and weekly charts prompt a break. A close below 0.6833 will add weight to already bearish price action and extend losses from the 0.7277 current year high of 7 May towards 0.6800. Beneath here is the 0.6750 Fibonacci retracement.
Meanwhile, a close back above 0.6865, if seen, will help to stabilise price action and prompt consolidation within congestion beneath 0.6900.