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Bearish Focus

AUDUSD TECHS
  • RES 4: 0.7917 High Mar 14, 2018 and a key resistance
  • RES 3: 0.7885 High Mar 15. 2018
  • RES 2: 0.7782/7820 High Jan 21 / High Jan 6 and the bull trigger
  • RES 1: 0.7704 High Jan 29
  • PRICE: 0.7585 @ 17:21 GMT Feb 2
  • SUP 1: 0.7564 Low Feb 2
  • SUP 2: 0.7557 Low Dec 28
  • SUP 3: 0.7517 Low Dec 22
  • SUP 4: 0.7462 Low Dec 21

AUDUSD maintains a bearish tone following last week's move lower. Recent weakness saw the pair trade below support at 0.7659, Jan 18 low. Scope is seen for a deeper pullback as part of a corrective cycle with momentum studies trending down and unwinding a recent overbought reading. Attention is on 0.7593/92, the 50-day EMA and Jan 28 low, where a break would strengthen a bearish case. On the upside, 0.7782 marks a firm resistance.

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

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