AUD/USD recovery finds resistance below 0.7500

AUD/USD  rose almost 200 pips from daily lows but the recovery lost strength near the 0.7500 area. The pair is far from the lows but still headed toward an important daily decline.

Stocks end recovery, so AUD/USD

The results of the referendum in the United Kingdom pushed the pair sharply to the downside. It bottomed during the Asian session at 0.7302, the lowest level in a week and then bounced to the upside, trimming losses.

It climbed to 0.7495, when it turned again to the downside as the recovery in equity prices in Wall Street also faded. Fear eased during the last hours, but markets ar consolidating losses. The Dow Jones is falling 2.75% and the Nasdaq 3.40%.

Currently, the pair it trading at 0.7440/50, down 2.25% for the day. On a weekly basis, it is still in positive territory thanks to the rally of the previous days.

If it manages to end around current levels it would be the fourth weekly gain in a row and the first close above the 20-WMA since May. On the negative side for the Aussie, the close is also far from the highs signaling some doubts about the current bullish tone.