AUD/USD recovery capped below 0.79, good to go short on rallies
AUD/USD extending decline after failure to hold break above 20-DMA on Feb 16th trade.
The pair has broken below 5-DMA and is currently holding support at 23.6% Fib at 0.7847.
Upside remains capped at 0.79 handle and we see resumption of upside only on break above.
Disappointment in Australia Construction Work Done figures for Q4 2017 weigh on the Aussie.
Australia Construction Work Done came in at a 19.4% contraction, widely missing the median market forecast of a 10% decline, and a deep correction from the previous reading of 16.6%.
Break below 23.6% Fib will see next major support at cloud top at 0.7817.
Technical studies have turned bearish. RSI and Stochs are now biased lower.
We see -ve DMI crossover which supports further weakness in the pair.
Support levels - 0.7847 (23.6% Fib), 0.7817 (cloud top), 0.7772 (200-DMA)
Resistance levels - 0.79 (5-DMA), 0.7932 (20-DMA), 0.7991 (61.8% Fib)
Good to go short on rallies around 0.7860/70, SL: 0.7935, TP: 0.7820/ 0.7780/ 0.7760.
The pair has broken below 5-DMA and is currently holding support at 23.6% Fib at 0.7847.
Upside remains capped at 0.79 handle and we see resumption of upside only on break above.
Disappointment in Australia Construction Work Done figures for Q4 2017 weigh on the Aussie.
Australia Construction Work Done came in at a 19.4% contraction, widely missing the median market forecast of a 10% decline, and a deep correction from the previous reading of 16.6%.
Break below 23.6% Fib will see next major support at cloud top at 0.7817.
Technical studies have turned bearish. RSI and Stochs are now biased lower.
We see -ve DMI crossover which supports further weakness in the pair.
Support levels - 0.7847 (23.6% Fib), 0.7817 (cloud top), 0.7772 (200-DMA)
Resistance levels - 0.79 (5-DMA), 0.7932 (20-DMA), 0.7991 (61.8% Fib)
Good to go short on rallies around 0.7860/70, SL: 0.7935, TP: 0.7820/ 0.7780/ 0.7760.
Aussie dented on the back of a big miss in Australia CAPEX data.
We see scope for further weakness.