AUDUSD bearish breakout in play but watch for positive EURUSD correlation

2 min read

2015-06-04_10-26-14

AUD dovish RBA tone, bad Trade balance and Retail sales results pulled the pair down to test 0.7700 zone. From technical perspective AUDUSD is bearish as long as 7800 holds, and we can spot 2 POCs as possible rejection points. First POC comes around 0.7750 zone ( 38.2,L4, and Standard PP ) while second POC ( L3, 50.0, trend line ) comes around 0.7765. If the pair rejects from those 2 points and 0.7800 stands firm we could see 0.7687 then 0.7644. Big volatility in EURUSD and positive correlation with AUDUSD could spike up the pair then reject it afterwards so pay attention to it.

All camarilla levels have been hit last night after AUD Trade balance and Retail sales release so we need to watch pivot points for next levels. Once again we can witness how L5 is indeed a good support.

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