#AUDUSD @ 067939 continues to trade in the red, so far down 190%, Pivot Orderbook analysis

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• AUD/USD continues to trade in the red, so far down 1.90%.
• Worldwide factory activity slowed down, except for the US, which is still in expansionary territory.
• AUD/USD: It could form an inverse head-and-shoulders if buyers keep prices above 0.6881; otherwise, 0.6402 is the next target.

The pair currently trades last at 0.67939.

The previous day high was 0.6905 while the previous day low was 0.6835. The daily 38.2% Fib levels comes at 0.6862, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6878, expected to provide resistance.

AUD/USD falls to seven-week lows on Thursday amidst a risk-off impulse, while the US dollar, as shown by a measure of the greenback’s value against a basket of peers, namely the US Dollar Index, rises to 20-year highs around 109.997. At the time of writing, the AUD/USD exchanges hands at 0.6786.

US equities remain downbeat, a reflection of investors’ mood. US economic data led by the ISM Manufacturing PMI for August, which measures factory activity in the US, rose by 52.3, aligned with the previous month’s readings, above estimates, bolstering the greenback to new YTD highs. Also, US unemployment claims, known as Initial Jobless Claims, rose by 232K, lower than the 248K foreseen by analysts.

The AUD/USD plunged from around 0.6830 to the day’s lows at 0.6771. US employment indicators cement the Fed’s intentions of hiking rates aggressively at the September meeting.

Another factor weighing on risk sentiment and the Australian dollar is China’s Covid-19 lockdowns in Chengdu, which put 21.2 million residents in lockdown. Furthermore, China’s Caixin PMI for August. Contracted, fueling expectations that its economic slowdown could spread worldwide, a sign that could trigger a global recession.

An absent Australian economic docket would leave AUD/USD traders leaning on US dollar dynamics. The US calendar will feature August’s Nonfarm Payrolls report, alongside the Unemployment Rate, and Average Hourly Earnings

The AUD/USD extended its losses for the third straight day, approaching a five-month-old downslope trendline, broken around July 27, which would turn support. If AUD/USD buyers stop the losses above the YTD low at 0.6681, an inverse head-and-shoulders chart pattern could form. Otherwise, the downtrend would resume, and AUD/USD sellers will target the May 15, 2020, lows at 0.6402.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6789 at the time of writing. Pair opened at 0.6841 and is trading with a change of -0.76 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6956, 50 SMA 0.6911, 100 SMA @ 0.701 and 200 SMA @ 0.7127.

The previous day high was 0.6905 while the previous day low was 0.6835. The daily 38.2% Fib levels comes at 0.6862, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6878, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6816, 0.679, 0.6746
• Pivot resistance is noted at 0.6886, 0.6931, 0.6956

[/s2If]
Join Our Telegram Group