AUD/USD: 100 4hr tested again on oil bouncing 4%

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - AUD/USD has been chasing the bid on the 0.72 handle and was approaching the 100 and 200 SMA on the hourly charts at 0.7230. Oil is bouncing back on inventories and perhaps this is the start of the short squeeze that might be expected with a bottom now made?

    The minor recovery offers the bears a tough choice for the New Year ion the short-term play while longer term, the broader trend is bearish and should Australia start to show cracks in its services industry and jobs sector, the RBA's rhetoric might offer a cause for easing.

    China remains a threat and some suggest that Australia has not felt the full effects of it yet. Meanwhile, we will wonder how the US economy will perform in respect to Yellen's gradual approach. These subjects were discussed recently when FXStreet hosted a special event about what 2016 might hold for the Forex traders.

    The panelists were Ashraf Laidi, Boris Schlossberg, Adam Button and Valeria Bednarik. Today, we want to share with you the recording of the whole show. Watch now and look out for commentary around the RBA, commodities, China and currency wars.

    AUD/USD levels

    Technically, AUD/USD met the 100 SMA on the 4hr chart at 0.7238 while the 200 SMA on the same time frame could offer some short-term support at 0.7199 and 18th Dec resistance. On further bids, intraday rallies are expected to remain capped by 0.7285. To the downside, below the 3-month uptrend at 0.7086, level wise, the 0.7017 November low and the September low is at 0.6940. The 4hr 200 SMA at 0.7190 caps rallies ahead of the 100 SMA on the same time frame at 0.7240.
    For more information, read our latest forex news.

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