AUD/USD -0.59% in the red for the 2nd straight session, US Dollar 0.23% finds its footing again.
The major pauses its rally, edges lower from 2-1/2 year highs at 0.8035.
Upside remains capped at 0.81 handle, intraday bias slightly bearish .
We evidence bearish divergence from price action on RSI and Stochs which raises scope for downside.
Stochs are at overbought levels and RSI is on verge of rollover from overbought levels.
Price ignores bullish engulfing pattern, slips lower to test 5-DMA at 0.8072. Close below will see further downside.
Immediate major support at 1H 200-SMA at 0.8036. Scope for test of 0.7986 (23.6% Fib retrace of 0.7501 to 0.8135 rally) on break below.
Support levels - 0.8072 (5 DMA), 0.8036 (1H 200-SMA), 0.80, 0.7986 (23.6% Fib retrace of 0.7501 to 0.8135 rally)
Resistance levels - 0.8125 (2017 high), 0.8166 (50% Fib retrace of 0.9505 to 0.6827 fall), 0.8220 (channel top)
Watch out for break below 5-DMA for further downside, target 0.8035/ 0.80/ 0.7985.
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