AUDUSD Rejects 07600 and turns lower

AUDUSD, Daily              

AUDUSD a Short position was entered on the close on Friday (January 27) at 0.7542 following the rejection of the move higher above 0.7600 earlier in the week.  Target 1 is a little over the 14 DATR and close to the 38.2 Fibonacci level of the rise from the December low (0.7160) at 0.7450.  Target 2 is the 50 period Moving Average and 50.0 Fibonacci level at 0.7385.

This position is in line with the higher time frames, the parabolic SAR also reversed on Friday too. However, the RSI remains positive at 60 but shows signs of turning and the MACD also remains positive to neutral. The USD has come under pressure so far this week with stock markets reversing from all time highs, oil prices coming down on increased rig activity in the US and political worries arising from the latest Presidential policies.  Gold, JPY and CHF have been the main beneficiaries.  AUDUSD currently trades at 0.7561 and resistance to a move lower will be found at the 0.7500 level where the 20 and 200 DMA currently converge.

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Stuart Cowell

Senior Market Analyst


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