AUD/USD dumped heavily as risk-off returns, near 0.7550

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/USD shaved-off gains and plummeted sharply in the European session, as risk-aversion returned to markets as the oil prices as well as the European equities turned into the red zone.

    AUD/USD fails near daily R1 at 0.7635 and dives

    Currently, the AUD/USD pair sinks -0.57% to 0.7552, having posted fresh session lows at 0.7546 last minutes. The bulls failed to retain control in Europe, with the Aussie dropping sharply from a three-day high, in response to a drastic turnaround in the risk conditions after the oil prices snapped the rally and fell back in the red, also driving the European equities lower.

    Among the European indices, Germany’s DAX is down -0.30%, the UK FTSE loses -0.10%, while the pan-European benchmark, the Euro Stoxx 50 drops -0.66%. While both crude benchmarks are seen posting moderate losses.

    Focus now remains on the US unemployment claims data for further USD moves, while Fed Yellen’s speech due on Friday Asian morning will be also closely eyed.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7643/50 (daily R1/ psychological levels) above which gains could be extended to the next hurdle located at 0.7673/74 (Apr 4 High/ daily R2). On the flip side, the immediate support located at 0.7508/00 (Mar 29 Low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7475/55 (Mar 24 Low/ daily S3).
    For more information, read our latest forex news.

Share This Page

free forex signals