AUDUSD TECHS: Clears Key Support
- RES 4: 0.6956 High Aug 30
- RES 3: 0.6916 High Sep 13 and a key resistance
- RES 2: 0.6747/79 High Sep 20 / 20-day EMA
- RES 1: 0.6682 Low Jul 14 and a recent breakout level
- PRICE: 0.6633 @ 15:45 BST Sep 22
- SUP 1: 0.6574 Low Sep 22
- SUP 2: 0.6568 Low May 27 2020
- SUP 3: 0.6538 Low May 26 2020
- SUP 4: 0.6464 61.8% retracement of the 2020 - 2021 bull leg
AUDUSD has resumed its downtrend - the pair has cleared support at 0.6682, the Jul 14 low and bear trigger. The break strengthens bearish conditions and maintains the broader bearish price sequence of lower lows and lower highs. This has opened 0.6868 next, the May 27 2020 low ahead of 0.6464, a Fibonacci retracement. Initial firm resistance has been defined at 0.6747, the Sep 20 high.
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AUDUSD TECHS: Bearish Threat
- RES 4: 0.7246 High Jun 7
- RES 3: 0.7176 3.0% Upper Bollinger Band
- RES 2: 0.7137 High Aug 11
- RES 1: 0.6968/7040 50-day EMA / High Aug 16
- PRICE: 0.6944 @ 16:49 BST Aug 23
- SUP 1: 0.6859 Low Aug 19
- 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
AUDUSD remains soft despite Tuesday’s bounce, with the pair extending the 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.
US STOCKS: Late Equity Roundup: Energy Sector Remains Strong
Stock indexes remain mixed in late trade, strong Energy sector helping SPX stave off weaker Health Care, Real Estate and Utilities sectors., Nasdaq outpacing weaker DJIA. Currently, SPX eminis trade -3.5 (-0.08%) at 4137.5; DJIA -124.42 (-0.
38%) at 32939.88; Nasdaq +34.9 (0.3%) at 12417.5.
- SPX leading/lagging sectors: As noted Energy sector continues to outperform (+3.52%) buoyed by Haliburton (HAL) +6.95%, Occidental (OXY) +7.10%, Marathon (MRO) +4.38%, Schlumberger (SLB) +6.47% and Diamondback Energy (FANG) +3.29%. Materials (+0.99) and Consumer Discretionary follow (+0.65%). Laggers: Real Estate (-1.30%), Health Care (--1.08%) weighed by Medtronics (MDT) -2.77%, Communication Services (-0.54%).
- Dow Industrials Leaders/Laggers: Caterpillar (CAT) +4.94 at 196.70, Chevron (CVX) +4.68 at 161.58 and Boeing (BA) +1.40 at 160.38. Laggers: United Health (UNH) -6.94 at 537.63, Home Depot (HD) -5.04 at 307.21 and Procter & Gamble (PG) -2.96 at 146.37.
- Notable earnings annc's yet this week: Salesforce.com (CRM $1.028 est and Nvidia (NVDA) $0.532 est late Wednesday, Dell late Thursday $1.636 est.
US: Late Corporate Credit Update: Steady Near Month Highs
Investment-grade corporate credit risk remained near highs for the month - inside relatively narrow session range as stocks hold mixed in late trade: SPX eminis trade -1.25 (-0.03%) at 4139.75; DJIA -107.91 (-0.33%) at 32954.7; Nasdaq +42 (0.3%) at 12422.75.
- Investment grade risk measured by Markit's CDXIG5 index -0.524 to 83.918; CDXHY5 high yield index at 100.467 (+0.160).
- Outperforming credit sectors (tighter or least wide): Energy (-3.5), followed by Consumer Staples and Communications both -2.9, Utilities -2.6.
- Lagging sectors (wider or least narrow): Senior Financials (-1.7), Consumer Discretionary (-1.9) followed by subordinated Financials (-2.2) and Tecnology (-2.3).
