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Bearish Focus Despite Recent Gains

AUDUSD TECHS
  • RES 4: 0.8007 High Feb 25 and the bull trigger
  • RES 3: 0.7883 High Feb 26
  • RES 2: 0.7838 High Mar 2 and 3
  • RES 1: 0.7800 High Mar 12
  • PRICE: 0.7759 @ 16:25 GMT Mar 12
  • SUP 1: 0.7621 Low Mar 9
  • SUP 2: 0.7583/64 Low Feb 5 / Low Feb 2 and the bear trigger
  • SUP 3: 0.7557/36 Low Dec 28 / 3.0% 10-dma envelope
  • SUP 4: 0.7517 Low Dec 22

AUDUSD gave up Thursday gains into the Friday close, confirming near-term strength as corrective. The outlook remains bearish following the sharp sell-off from 0.8007, Feb 25 high. The breach on May 5 of 0.7693, Feb 26 low reinforces the current short-term bearish theme, signalling scope for a stronger bear leg and opens 0.7564, Feb 2 low. Firm short-term resistance has been defined at 0.7838, high Mar 2 and 3. A break would alter the picture and allow for a stronger recovery.

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

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