AUD/USD Daily Analysis
AUD/USD outlook remains on the lower side following the decline from its recent high of 0.7660. The intraday support levels are at 0.7336 and 0.7312. The intraday resistance levels are at 0.7384 and 0.7400.
On the intraday chart, the current price is near the SMA-50 support line which is at 0.7341 while the SMA-50 is indicating resistance at 0.7454. The mid-band is at 0.7469 with upper and lower bands at 0.7585 and 0.7353 respectively. The RSI is at 44 and has a slight indication of a diversion. Currently, the SMA-50 is likely to act as a strong support area and only a clear breach below this level would ensure a further drop. Therefore, a sell entry would be ideal if the pair closes below the 0.7341 on the 4-hourly chart. The intraday target for this trade will be 60 t0 70 pips while a reasonable stop-loss will be near 0.7390.
If the bulls manage to hold above the SMA-50 the chance of a recovery above 0.7400 would be high in the coming days. However, closing below the SMA-50 would be an indication of a larger drop during this week.