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Gains Considered Corrective

AUDUSD TECHS
  • RES 4: 0.7266 High May 4/5 and a bull trigger
  • RES 3: 0.7219 50-day EMA
  • RES 2: 0.7135 Low May 6
  • RES 1: 0.7054 High May 11 and key resistance
  • PRICE: 0.6976 @ 20:24 BST May 16
  • SUP 1: 0.6829 Low May 12
  • SUP 2: 0.6805 Low Jun 22 2020
  • SUP 3: 0.6784 0.764 proj of the Apr 5 - May 2 - 4 price swing
  • SUP 4: 0.6759 50.0% retracement of the Mar ‘20 - Feb ‘21 upleg

AUDUSD maintains a bearish tone having resumed its downtrend last week. The move lower marked an extension of the reversal last week from 0.7266, the May 4/5 high. Moving average studies are in bear mode condition, highlighting current sentiment. Support at 0.6968, the Jan 28 low and a bear trigger, has been breached. This opens 0.6805 next, Jun 22 2020 low. Initial firm resistance is at 0.7054, May 11 high. Gains are considered corrective.

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