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Trades Through Support

AUDUSD TECHS
  • RES 4: 0.6771 High Jan 3
  • RES 3: 0.6751 76.4% retracement of the Dec 28 - Apr 19 bear leg
  • RES 2: 0.6729 High Jan 12
  • RES 1: 0.6636/6714 20-day EMA / High Jun 16 and the bull trigger
  • PRICE: 0.6586 @ 18:30 BST Jun 7
  • SUP 1: 0.6579 Low Jun 7
  • SUP 2: 0.6558 Low May 8
  • SUP 3: 0.6539 50.0% retracement of the Apr 19 - May 16 bull leg
  • SUP 4: 0.6497 61.8% retracement of the Apr 19 - May 16 bull leg

A sharp sell-off in AUDUSD Friday undermines the recent bullish theme. The move lower resulted in a break of both the 20- and 50 -day EMAs. Furthermore, support at 0.6591, the May 30 low has also been pierced. A continuation lower would highlight a possible reversal and signal scope for a deeper pullback, towards 0.6558 initially, the May 8 low. For bulls, a resumption of gains would open the bull trigger at 0.6714, the Jun 16 high.

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