- AUD / USD recovery attempt has been capped just below 0.7100
- The previous support level changed the resistance and the 50 hourly simple moving average (SMA) is limiting upside attempts.
- On the downside, the 0.7055 level is supporting the pair.
The Australian dollar has fallen nearly 2% this week weighed down by the strength of the US dollar amid a widespread flight for safety. The pair extended its reversal from last week’s highs at 0.7245, to hit two-week lows at 0.7050 before posting a slight recovery attempt on Friday, which has been capped just below 0.7100.
Hourly charts show the pair moving practically flat over the last few sessions, with limited bullish attempts below 0.7095, where the pair has found resistance at a previous support level (October 6 low) and also at the 50 hour SMS. , which has been holding the pair. down previously.
On the upside, a convincing break beyond the aforementioned 0.7095 level could increase bullish momentum, leading the pair towards 0.7145 (Oct 15 high) and 0.7210 / 20 (Oct 13 high / intraday level).
On the other hand, initial support is at 0.7055 (low of October 15). Before here, the pair would resume the downtrend heading towards 0.7030 (September 28 low) and 0.7000 (September 25 low).
Credits: Forex Street