The AUDUSD edges higher on Friday as traders collected profits on oversold conditions after steep six-day fall, with the sentiment being improved by growing expectations for RBA’s 0.15% rate hike.
Although reversal pattern is forming on a daily chart, recovery is likely to be limited, as key factors, such as global growth slowdown; expectations for aggressive Fed rate hikes and China’s slowdown due to the latest Covid lockdowns, would heavily weigh on Aussie dollar.
Initial resistance lays at 0.7198 (Fibo 23.6% of 0.7661/0.7055), with stronger upticks to be ideally capped by 0.7253 (daily cloud base) and 0.7286 (Fibo 38.2% of 0.7661/0.7055) to keep larger bears in play.
Res: 0.7198; 0.7228; 0.7253; 0.7286
Sup: 0.7100; 0.7081; 0.7055; 0.7033
