AUDUSD edges higher on Thursday morning after bears repeatedly failed to clear 200DMA support (0.6627).
Recovery is in its early stage and needs more work at the upside to generate firmer positive signal, although near-term action to remain constructive while above 200DMA.
Repeated daily close above here to boost hopes of stronger recovery and Friday’s close above 200DMA to complete a bear-trap on weekly chart and open more prospects for stronger bounce however, 100DMA (0.6794) and daily Ichimoku cloud top (0.6707) mark strong barriers where potential recovery rally may face strong headwinds.
Daily studies remain bearishly aligned (MA’s in predominantly bearish setup and north heading 14-d momentum is still deeply in negative territory) which contributes to scenario of limited correction before larger bears regain control.
Look for firmer direction signals on break of either boundary of daily Ichimoku cloud (base at 0.6593 and top at 0.6707).
Res: 0.6670; 0.6694; 0.6707; 0.6739.
Sup: 0.6627; 0.6593; 0.6575; 0.6563.
. Recovery is in its early stage and needs more work at the upside to generate firmer positive signal, although near-term action to remain constructive while above 200DMA.){kind=link}