AUD/USD: bears testing commitments below 0.75 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 24, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/USD is making a minor recovery in the 22nd March down trend from 0.7650 zone and is pushing its way back on to the 0.75 handle from 0.7477 lows.

    AUD/USD lost the space around the 0.76 handle on the back of a slide in commodity prices this week breaking the 0.7520 support. The downside started in Asia again with iron ore sold off heavily to the lowest levels since November. For today, oil is weighing on the price and for a second day making a low of $38.31 so far. However, coming to the bulls rescue, US data today highlighted risks to Q1 GDP growth, as explained by analysts at Wells Fargo.

    US: Durable goods orders report highlights risks to Q1 GDP growth - Wells Fargo

    Fed's Bullard: Fed forecasts suggest next hike may not be far off

    The next key events for the Aussie will be Chinese manufacturing data ahead of the nonfarm payrolls showdown.

    AUD/USD levels

    AUD/USD's downside is stalling at 0.7520 support while Karen Jones, chief analyst at Commerzbank recently explained that the intraday Elliott count is suggesting a retracement to 0.7520/0.7415, taking us back to the 16th March lows and start of the rally that reached 0.7680. A continuation of the upside targets 0.7550 with the 4hr 50 sma just above it at 0.7557. The 4hr 100 sma at 0.7490 was tested and bears are penetrating last defence lines before the 16th March lows at 0.7412.
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