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Recent Pullback Considered Corrective

AUDUSD TECHS
  • RES 4: 0.7283 High Jun 3 and a key resistance
  • RES 3: 0.7246 High Jun 7
  • RES 2: 0.7172 3.0% Upper Bollinger Band
  • RES 1: 0.7141 76.4% retracement of the Jun 3 - Jul 14 downleg
  • PRICE: 0.6917 @ 16:05 BST Aug 17
  • SUP 1: 0.6870 Low Aug 5 and key support
  • SUP 2: 0.6786 Low Jul 18
  • SUP 3: 0.6682 14 and the bear trigger
  • SUP 4: 0.6647 0.764 proj of the Apr 5 - May 12 - Jun 3 price swing

The recent AUDUSD pullback is considered corrective - for now. The Aug 10 breach of 0.7047, Aug 1 high, confirmed a resumption of the uptrend that started Jul 14 and signals scope for a continuation higher. The break has also established a bullish price sequence of higher highs and higher lows on the daily chart and this has opened 0.7141, a Fibonacci retracement. Key support to watch is at 0.6870, Aug 5 low. A break would alter the picture.

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

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