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AUD/USD extends correction to test Friday highs in 0.7050's

2018-12-24 11:35:22Market Analysis
AUD/USD extends correction to test Friday highs in 0.7050's

AUD/USD has continued to correct the fade of the opening high at 0.7051 from the lows of 0.7033 and has extended to a current high of 0.7050.

AUD/USD traded on the back foot on Friday following a risk-off session that sent the antipodeans down by 1% with a 2% slide on Wal Street. There were jitters over Trump's heightened disfavour of Fed policy as well as the US government partial shutdown, ongoing Sino/US trade tensions and concerns over the global growth outlook. 

The United States Economy and Politics in 2019

As a result, AUD/USD has now penetrated the 76.4% Fib of the Oct-Dec lift leaving a bear engulfing candle on a technical basis. However, in thin liquidity, AUD/JPY is on the bid as the yen sells off. AUD/USD is looking to challenge Friday's highs here at the midpoint of the 0.70 handle. 

AUD/USD levels

Technically, the pair remains bearish with daily RSIs weighing and raising prospects of a test of the 2018 low at 0.7020. A break there opens room to the February and January 2017 lows.