AUDUSD fumbles, could it be saved?
“Recession fear induce higher demand for safe-haven.”
AUD/USD pared its gains, touching fresh weekly low of 0.6880 after Fed Chair Jerome Powell’s testimony in front of US Senate. During the session, Powell reemphasized that they are committed to bring down inflation. While pace of tightening would depend on upcoming data, he also acknowledged for the first time that their action might tip US into a recession. Likewise, dire economic data from China has further dialled down market demand for Aussie dollar (an economy which is highly dependent on China).
Quick recap on AUDUSD
The pair failed to extend its recovery as it heads back to strong support level of 0.6850.
AUDUSD Weekly Technical Analysis
AUDUSD is skewed towards the downside as the pair remain subjected by the 200-MA line.
AUDUSD Daily Technical Analysis
From daily perspective, overall momentum is skewed towards the downside for near-term as MACD portrays increasing bearishness.
ORDER: SELL STOP
STOP LOSS: 0.6880
Target 1: 0.6775
Target 2: 0.6740
ZFX Analyst’s Comment
While the pair is skewed towards the downside in weekly perspective, it is worth noting that 0.6850 is the pair’s recent strong support. Thus, it is advisable to wait for a breakout before entering the market.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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