Aussie hurt by weakness in iron ore prices and bearish tone of RBA minutes.
AUD/JPY closed below 200-DMA for the first time after 5-1/2 months.
The pair finds major trendline support at 81.60, break below will accentuate weakness.
Technical indicators are bearish, but caution advised as RSI close to oversold levels.
We see scope for test of 80.30 (50% Fib retrace of 72.43 to 88.17 rally). Bearish invalidation if pair retraces above 200-DMA.
Support levels - 81.60 (trendline), 81.11 (Nov 18 low), 80.30 (50% Fib)
Resistance levels - 82.06 (38.2% Fib), 82.10 (200-DMA), 82.25 (5-DMA), 82.95 (April 18 high)
Good to go short on rallies around 81.90, SL: 82.80, TP: 81.10/ 80.30
AUD/JPY closed below 200-DMA for the first time after 5-1/2 months.
The pair finds major trendline support at 81.60, break below will accentuate weakness.
Technical indicators are bearish, but caution advised as RSI close to oversold levels.
We see scope for test of 80.30 (50% Fib retrace of 72.43 to 88.17 rally). Bearish invalidation if pair retraces above 200-DMA.
Support levels - 81.60 (trendline), 81.11 (Nov 18 low), 80.30 (50% Fib)
Resistance levels - 82.06 (38.2% Fib), 82.10 (200-DMA), 82.25 (5-DMA), 82.95 (April 18 high)
Good to go short on rallies around 81.90, SL: 82.80, TP: 81.10/ 80.30