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Corrective Cycle Still In Play

AUDUSD TECHS
  • RES 4: 0.6857 High Jun 20
  • RES 3:0.6768 High Jun 23
  • RES 2: 0.6806 High Jun 22
  • RES 1: 0.6721/0.6752 High Jun 27 / 1.0% 10-dma Envelope
  • PRICE: 0.6668 @ 16:17 BST Jul 5
  • SUP 1: 0.6596 Low June 29 and the bear trigger
  • SUP 2: 0.6579 Low Jun 5
  • SUP 3: 0.6562 76.4% retracement of the May 31 - Jun 16 rally
  • SUP 4: 0.6485 Low Jun 1

The trend outlook for AUDUSD remains bearish following recent weakness and short-term gains are considered corrective. The pair has recently traded below the 20- and 50-day EMAs, suggesting scope for a deeper retracement. A resumption of weakness would open 0.6562, 76.4% of the May 31 - Jun 16 rally. Initial firm resistance is at 0.6721, the Jun 27 high. A breach of this level would suggest scope for a stronger correction.

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