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Bearish Despite Friday’s Bounce

AUDUSD TECHS
  • RES 4: 0.7666 50-day EMA
  • RES 3: 0.7645 High Jun 17
  • RES 2: 0.7617 High Jun 25 and a key short-term resistance
  • RES 1: 0.7571 High Jun 29
  • PRICE: 0.7532 @ 16:53 BST Jul 5
  • SUP 1: 0.7445 Low Jul 2
  • SUP 2: 0.7400 Round number support
  • SUP 3: 0.7383 Bear channel base drawn off the Feb 25 high
  • SUP 4: 0.7372 1.236 proj of Feb 25 - Mar 9 - 18 price swing

Despite Friday's recovery, the AUDUSD outlook remains bearish. Last week's break lower maintains the price sequence of lower lows and lower highs. Price is also below the 200-dma. The move in June through 0.7532, Apr 1 low confirmed a resumption of the reversal that occurred Feb 25 and this also highlights a bearish theme. The focus is on 0.7383, a bear channel base drawn off the Feb 25 high. Firm resistance is at 0.7617, the Jun 25 high.

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