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Bear Cycle Still In Play

AUDUSD TECHS
  • RES 4: 0.7040 High Aug 16
  • RES 3: 0.7009 High Aug 26 and a key short-term resistance
  • RES 2: 0.6945 50-day EMA
  • RES 1: 0.6855/6913 High Sep 2 / 20-day EMA
  • PRICE: 0.6848 @ 15:56 BST Sep 2
  • SUP 1: 0.6771 Low Sep 1
  • SUP 2: 0.6719 Low Jul 15
  • SUP 3: 0.6682 14 and the bear trigger
  • SUP 4: 0.6647 0.764 proj of the Apr 5 - May 12 - Jun 3 price swing

A bearish theme in AUDUSD remains intact and the pair traded lower again Thursday before stabilising slightly into the Friday close. The extension lower this week strengthens bearish conditions and confirms a resumption of the bear leg that started Aug 11. The pair has breached 0.6789, 76.4% of the Jul 14 - Aug 11 upleg. This opens 0.6682, the Jul 14 low and a key support. On the upside, key short-term resistance has been defined at 0.7009, Aug 26 high.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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