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Corrective Cycle Still In Play

AUDUSD TECHS
  • RES 4: 0.7487 High Jul 15
  • RES 3: 0.7427 High Aug 4 and a key resistance
  • RES 2: 0.7385/89 50-day EMA / High Aug 11
  • RES 1: 0.7373 High Sep 01
  • PRICE: 0.7365 @ 16:42 BST Sep 1
  • SUP 1: 0.7222/7106 Low Aug 27 / Low Aug 20 and the bear trigger
  • SUP 2: 0.7053 38.2% retracement of the Mar '20 - Feb uptrend
  • SUP 3: 0.6991 Low Nov 2, 2020
  • SUP 4: 0.6921 Low Jul 14, 2020

AUDUSD maintains a firmer tone and has cleared the 20-day EMA. Recent gains are still considered corrective though. The breach of 0.7290 on Aug 17 confirmed an extension of the bearish price sequence of lower lows and lower highs, reinforcing a downward cycle. Price has also cleared 0.7200 opening 0.7053 further out, a Fibonacci retracement. The next firm resistance is at 0.7385/89, the 50-day EMA and Aug 11 high. A break would be bullish.

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