FBS: technical outlook for AUD/USD
AUD/USD slid below $0.9500 on lower-than-expected employment data from nearly 1-week high at $0.9545 reached yesterday. Aussie was rejected by the Ichimoku Cloud at H4.
Technical setup looks bearish. Remember that last week AUD breached down the rising wedge after it had been rejected from the 200-day MA and 50% Fibo of the decline from April to August in the $0.9750/00 area. This week Australian dollar staggered around 38.2% Fibo. We may actually see Aussie forming a head & shoulders – in this case there’s a risk of a move to $0.9000. We need some really strong data coming from the US to cause such move though.
There’s support at $0.9450 and $0.9423. In our view, Aussie’s vulnerable for a decline to $0.9350/00. Resistance is at $0.9545, $0.9600 and $0.9650.
Chart. H4 AUD/USD