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Extends the dip to test the 100-day SMA

  • AUD / USD extends Thursday’s slide as USD holds firm.
  • The 100-day SMA tests the bullish commitment, while the AUD / USD risks extending the decline further.
  • All eyes on the US NFP data, with the AUD / USD rise limited by the 21-day SMA.

AUD / USD remains on the defensive below 0.7400, looking to extend Thursday’s slide amid the recent strength of the US dollar against its main rivals.

The rebound in Treasury yields and new concerns in Chinese real estate continue to keep the buoyant tone around the USD intact. The Australian dollar is also holding cautiously ahead of the major US NFP release to be released at 12:30 GMT.

Looking at the AUD / USD daily chart, the pair is testing the support of the 100-day SMA at 0.7380.

If this level is breached, sellers will look to break out of the horizontal 50 SMA at 0.7365 to seek bearish validation.

A further decline towards 0.7300 will be on the table if the previous support breaks.

The 14-day RSI is pointing lower below the midline, suggesting that there is room for the extension of the recent drop.

AUD / USD daily chart

On the other hand, the pair’s bulls will face stiff resistance at the 21 SMA at 0.7443 on the way to recovery.

Regaining this level is critical to unleashing additional recovery gains towards Thursday’s high of 0.7471.

The next critical barrier to the upside for the pair is expected at the round level of 0.7500.

AUD / USD additional levels


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