Logout
Are you sure you want to exist?
Denis Sergienko • 2022-07-14

AUDUSD stays inside short-term bearish channel at yearly low

AUDUSD stays inside short-term bearish channel at yearly low

AUDUSD justifies its risk-barometer status aptly as it remains near the two-year bottom, inside a 12-day-long bearish channel. The quote’s further downside, however, appears limited in the short-term due to the nearness to the stated channel’s lower line, close to 0.6690 at the latest. That said, the 61.8% Fibonacci Expansion (FE) of June 16 to July 05 moves, near 0.6705, could offer immediate support to the Aussie pair. In a case where the bears refrain from stepping back from 0.6690, the 78.6% FE level near 0.6650 could gain major attention.

Alternatively, the 50-SMA level surrounding 0.6800 guards the immediate recovery moves ahead of the immediate descending channel’s upper line, around 0.6840 by the press time. It’s worth noting that a clear upside break of the 0.6840 hurdle isn’t a call to the AUDUSD bulls as the 100-SMA level of 0.6855 could challenge the advances afterward. Should the quote rises past 0.6855, the odds of its run-up towards the late June swing high near 0.6965 and then to the 0.7000 psychological magnet can’t be ruled out.

Overall AUDUSD remains in a bearish trajectory, despite the recently firmer Aussie jobs report and increasing calls about the RBA’s aggression. However, the downside room appears limited.

Join us on FB and Twitter to stay updated on the latest market events.