AUD/USD: indecisive market, focus on today's close
- AUD/USD created a doji candle yesterday, signaling indecision in the market.
- A close below 0.7086 (low of Doji candle) would imply bearish continuation.
- Risk aversion is likely to keep the Aussie dollar under pressure.
The AUD/USD witnessed a solid two-way business on Thursday before ending largely unchanged on the day at 0.7106.
Essentially the pair created a doji candle, which is considered a sign of indecision in the marketplace. As the candle has appeared at the bottom of the sell-off from the recent high of 0.7395, one may say that the indecision is predominantly among the bears.
As a result, only a close below 0.7086 (low of yesterday's doji candle) would revive the bearish outlook.
Moreover, the pair is likely to drop below that key support, courtesy of risk aversion in the equities. The US stock markets fell on Thursday after the US House of Representatives Speaker Paul Ryan said that President Donald Trump would not sign a temporary government funding resolution, raising the risk of a partial government shutdown.
Notably, stocks are likely to trade risk-averse for the fourth day straight as the S&P 500 futures are currently reporting a 0.20 percent drop. The AUD, therefore, is likely to remain under pressure.
AUD/USD Technical Levels
Today Last Price: 0.7116
Today Daily change: -1.0 pips
Today Daily change %: -0.0141%
Today Daily Open: 0.7117
Previous Daily SMA20: 0.7231
Previous Daily SMA50: 0.7197
Previous Daily SMA100: 0.7216
Previous Daily SMA200: 0.7382
Previous Daily High: 0.7149
Previous Daily Low: 0.7086
Previous Weekly High: 0.7247
Previous Weekly Low: 0.7151
Previous Monthly High: 0.7345
Previous Monthly Low: 0.7072
Previous Daily Fibonacci 38.2%: 0.7131
Previous Daily Fibonacci 61.8%: 0.7157
Previous Daily Pivot Point S1: 0.7085
Previous Daily Pivot Point S2: 0.7054
Previous Daily Pivot Point S3: 0.7022
Previous Daily Pivot Point R1: 0.7149
Previous Daily Pivot Point R2: 0.7181
Previous Daily Pivot Point R3: 0.7212