AUDUSD down for the 3rd day in a row

AUDUSD falls beneath the 38.2% retracement

The AUDUSD is decrease for the third consecutive day. The pair right now is struggling after China retail gross sales knowledge got here in weaker than anticipated. There may be additionally a “danger off” sentiment as fears from Ukraine, together with larger  inflation  permeate the markets. Oil costs are larger. Gold is larger on security flows. US shares are decrease.

Trying on the day by day chart, not solely is the AUDUSD down for the third consecutive day, however it is usually down seven the final 9 buying and selling days after peaking at 0.76607 on April 5 (the RBA stored charges unchanged on that day however did make delicate language adjustments – see post here). The good points on April 5 took the worth of the AUDUSD to the very best stage since June 16, however momentum couldn’t be sustained.

On April 6 (the day after the RBA charge resolution), the AUDUSD value moved again beneath a swing space close to 0.7540 and 0.75602.

The value has been transferring decrease since then with a modest pause on the 38.2% retracement of the transfer up from the January 2022 low at 0.73957 final week.

In the present day, the  AUDUSD  has moved beneath, and additional away from the 38.2% retracement as momentum to the draw back has elevated. The low value reached 0.7543.

The following main goal on the day by day chart is available in on the 50% midpoint of the 2022 buying and selling vary at 0.73138. The 200 day transferring common at 0.72938 could be one other goal on additional draw back momentum.

Drilling to the hourly chart, a swing space between 0.7367 and 0.73799 was damaged after which retested right now (see pink numbered circles and yellow space) keep beneath that space will probably be shut danger for intraday sellers going ahead. Transfer above is required to provide the consumers some added confidence.

On the draw back, the worth has additionally moved beneath the 61.8% retracement of the transfer up from the March 15 low. That is available in at 0.73536. Discovering sellers close to that stage going ahead could be the most effective case situation for shorts in search of further draw back momentum.


AUDUSD is beneath a swing space on the hourly chart

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