AUDUSD TECHS: Bearish Threat Remains Present
- RES 4: 0.7246 High Jun 7
- RES 3: 0.7184 3.0% Upper Bollinger Band
- RES 2: 0.7137 High Aug 11
- RES 1: 0.6966/7040 50-day EMA / High Aug 16
- PRICE: 0.6915 @ 16:39 BST Aug 24
- SUP 1: 0.6856 Low Aug 23
- SUP 2: 0.6789 76.4% retracement of the Jul 14 - Aug 11 upleg
- SUP 3: 0.6719 Low Jul 15
- SUP 4: 0.6682 14 and the bear trigger
A bearish threat in AUDUSD remains present following the recent retracement from 0.7137, the Aug 11 high. The move lower last week resulted in a print below 0.6870, the Aug 5 low. Clearance of this level would undermine the recent bull theme and signal scope for a deeper pullback. Initial firm resistance has been defined at 0.7040, the Aug 16 high where a break is required to ease the current bearish pressure.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
AUDUSD TECHS: Resistance At The 50-Day EMA Remains Exposed
- RES 4: 0.7202 High Jun 9
- RES 3: 0.7141 76.4% retracement of the Jun 3 - Jul 14 downleg
- RES 2: 0.7069 High Jun 16
- RES 1: 0.6977 High Jul 22
- PRICE: 0.6952 @ 16:39 BST Jul 25
- SUP 1: 0.6859 Low Jul 21
- SUP 2: 0.6786/6682 Low Jul 18 / 14 and the bear trigger
- SUP 3: 0.6647 0.764 proj of the Apr 5 - May 12 - Jun 3 price swing
- SUP 4: 0.6588 Low May 28 2020
AUDUSD traded higher Friday, piercing the 50-day EMA on an intraday basis. This improves the near-term outlook and a continuation higher would open the Jun 16 high at 0.7069, and potentially 0.7141, the 76.4% retracement of the Jun 3 - Jul 14 downleg. Any reversal lower would instead refocus attention on the 0.6682 bear trigger where a break would confirm a resumption of the broader downtrend.
US: White House Press Conference Beginning Shortly
White House Press Secretary Karine Jean-Pierre and COVID Response Coordinator Dr. Ashish Jha are shortly due to give a press conference.
- Livestream: https://www.youtube.com/watch?v=16Bw2sEwWNc&featur...
- Dr Jha will provide an update on the health of President Biden and may give further information about steps the administration is taking to deal with the increasing risk presented by Monkeypox.
US TSYS: Partial Retracement Of Last Week’s Recession-Focused Rally
- Treasuries have more closely followed the risk-on moves implied in FX rather than falling equities, where tech companies appear to weigh on performance with Nasdaq seeing larger declines than SPX.
- Accelerated cheapening in the front-end, despite a brief pause for a solid 2Y auction stopping through 0.6bps with reasonable internals, has seen parallel shift higher in the yield curve (2YY +6.3bps, 10YY +6.6bps) from the early session bear steepening as both breakevens and real yields increase.
- That only sees a partial reversal of Friday’s rally, with yields still some 20bps below mid-last week levels before growth indicators started to roll heavily.
- Plenty of growth-related triggers tomorrow, with a heavy earnings week (50% of S&P market cap) beginning in earnest, the Richmond Fed manufacturing and Conf. Board consumer surveys plus the $46B 5Y auction.
