AUD/USD Outlook: Break Below 10DMA Would Signal End Of Recovery Phase And Reversal

Technical analysis of Forex market

The Australian dollar fell in European session on Friday, maintaining negative near-term tone, following repeated recovery rejection at 0.6750 Fibo barrier (23.6% of 0.7032/0.6662, reinforced by falling 20DMA) and Thursday’s close in read after three-day rally.

Recovery phase might be over as larger picture is bearish and renewed risk-off mode weighs on Aussie.

Dips were so far held by 10DMA (0.6715) with clear break below this indicator boost initial negative signal and shift near-term focus lower.

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The pair may extend directionless action on repeated close above 10DMA that would keep the pair within 0.6715/49 range, while break above 0.6750 would generate initial bullish signal.

Res: 0.6731, 0.6750, 0.6775, 0.6803
Sup: 0.6715, 0.6706, 0.6695, 0.6682