Aussie bulls are weak despite a recovery in risk-off mood as Australian consumer inflation expectations soar. (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)]

• Aussie bulls are weak despite a recovery in risk-off mood as Australian consumer inflation expectations soar.
• An establishment of the major below the 200-EMA may activate a bearish reversal.
• The RSI (14) has shifted into the bearish range which signals that the downside momentum is active.

The pair currently trades last at 0.6419.

The previous day high was 0.6522 while the previous day low was 0.6415. The daily 38.2% Fib levels comes at 0.6456, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6481, expected to provide resistance.

The AUDUSD pair is underperforming against other risk-perceived currencies after a higher-than-projected release of consumer inflation expectations in Tokyo. The asset is hovering near the round-level support of 0.6400 in the early European session and has diverged to a negative correlation with US Treasury yields.

The 10-year US Treasury yields are continuously refreshing day’s low and are trading below 4.07%, at the press time. Meanwhile, the US dollar index (DXY) has refreshed its day’s low at 110.17 amid a recovery in positive market sentiment.

On an hourly scale, the asset has witnessed a steep fall after failing to sustain above the horizontal resistance placed from October 27 high at 0.6522. The major is hovering around the 200-period Exponential Moving Average (EMA) at 0.6427. This could be a make or a break move as an establishment below the mighty 200-EMA will trigger a bearish reversal.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates that the downside momentum is active.

The Greenback bulls will remain in a dominant position if the asset drops below Monday’s low at 0.6406, which will drag the asset towards October 31 low at 0.6368. A slippage below the latter will exploit the asset to display more downside to near November 3 low at 0.6272.

On the flip side, a break above Tuesday’s high at 0.6551 will drive the asset towards the round-level resistance at 0.6600, followed by September 21 high at around 0.6700.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.6419 at the time of writing. Pair opened at 0.6424 and is trading with a change of -0.08 % .

The pair is trading above its 20 Daily moving average @ 0.637, below its 50 Daily moving average @ 0.6507 , below its 100 Daily moving average @ 0.6709 and below its 200 Daily moving average @ 0.6963

The previous day high was 0.6522 while the previous day low was 0.6415. The daily 38.2% Fib levels comes at 0.6456, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6481, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6385, 0.6346, 0.6278
• Pivot resistance is noted at 0.6493, 0.6561, 0.6601

[/s2If]
Join Our Telegram Group