Technical Chart pick of the day: AUDUSD – Bearish
The Australian dollar is under pressure after employment data showed a large increase in unemployment bolstering expectations for further stimulus measures. Australia’s farm industry is still in peril, as the drought conditions and prior bush fires have affected national production. There could also be impending disruptions especially on tourism and agriculture due to the uncertainties in the Covid-19 situation which could also affect supply chains, especially considering increasing tensions with China.
The USD rose against a basket of currencies this morning, as Fed Chairman Powell dismissed the idea of negative interest rates.
· On a technical perspective, the trend is bearish, with prices below the 20, 40, 100 and 200 EMAs
· A bearish crossover formed, with the 40 EMA edging below the 200 EMA. This indicates that selling pressure is present.
· Based on the pivot point analysis, prices are below the pivot levels. This signifies bearishness.
Resistance: R1: 0.65053, R2: 0.65571, R3: 0.66424
Support: S1: 0.64200, S2: 0.63865, S3: 0.63012
