Forex: AUD/USD capped below 1.0300

AUD/USD managed yesterday in late Asia-Pacific print fresh weekly highs around the 1.0300 round, but found solid selling interest as reported earlier at that level, coincident with a key technical level as previous Feb 28 high and 38.2% Fibo retrace of latest daily down leg, retracing ever since to last 1.0238, near session lows. The pair is still +0.33% higher for the week, ahead of Aus trade balance data at 00:30 GMT. AIG construction index just released shows best result since mid 2010.

According to Valeria Bednarik, Chief Analyst at Fxstreet.com: “The hourly chart shows price back below the daily descendant trend line, 20 SMA above current price turning lower and indicators heading south after a limited correction, all of which supports further slides,” the analyst suggests, adding: “4 hours chart shows indicators heading strongly south still in positive territory while 20 SMA stands below current price: renewed selling pressure below 1.0220 is required to confirm a downside continuation towards 1.0100 price zone,” she concludes.

Valeria spots support levels at:  1.0180, 1.0140 and 1.0100, while resistance levels at: 1.0270, 1.0300 and 1.0335.