AUD/USD: consolidates at descending trend line resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - AUD/USD has consolidated on the 0.72 handle after penetrating the 200 SMA on the hourly time frames at 0.7202 yesterday. This is a full recovery,and some, since the Fed hiked rates last week. We are up to a key resistance level within the descending channel.

    Markets are thin and illiquid and we will have to wait for desks to return to a direction on this again in the New Year. Meanwhile, the data from the US was mixed today with good GDP 2.0% final revisions vs 1.9% expected but a weaker dollar on the back of the home sales numbers that were a poor 4.76m vs 5.35m exp.

    However, at least the numbers can be trusted while in Australia, the Aussie has been supported on dubious jobs data time and time again and especially the most recent. In this respect, Adam Button, MD at Forexlive explained, “There is only one thing that I trust less than Chinese economic data and that is Australian economic data. I see Aussie headed much lower”. Ashraf Laidi, founder of Intermarket Strategy Ltd countered, countered and said, “I like the Aussie. I enjoy what Adam said but you trade the numbers first, and you crush them afterwards”.

    This was said during 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, we are up to the descending resistance line 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 capps 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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