AUD/USD: downside still to play for on lower oil?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 21, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - AUD/USD has been working away in a tight range pressured in the overall bearish theme in the medium term although had been making a valiant effort recovering from November lows until meeting supply shy of the 0.74 early December.

    The good news vibes in the apparently resilient Australian economy and subsequent bullishness from the RBA economy were short-lived in December in the face of the market making up its mind the Fed were about to hike, and they did, to commodities continuing to fall, they did, and now oil continuing to remain in supply at the start of the remaining remaining trading days for the year while Oil prices are at levels last seen during the peak of the financial crisis of 2008/2009.

    AUD/USD levels

    Technically, the 200 SMA on the 4hr at 0.7191 offers downside pressures while next resistance is seen at R1 0.7237. This is where the 100 SMA on the 4hr is trading also. A break of which challenges the near term downtrend from 0.7385 and resistance line. The 200 DMA at 0.7432 is key technical resistance on major recovery. Below here the downside remain to play for targeting a break of the key and psychological 0.7000 support. 0.6907 is the Spe low and lowest point since 2009.
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