AUD/USD holds onto daily gains

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The Australian dollar advanced to a fresh weekly high of 0.7191 against the greenback, holding onto gains by the end of the day.

    Earlier this Tuesday, the RBA left rates on hold at 2.0% with the accompanying statement broadly in line with market's expectations and perceived as relatively hawkish, especially considering the stable inflation outlook.

    The Aussie was also supported by improved risk sentiment, with commodity currencies among the best performers. At time of writing, AUD/USD is trading at 0.7175, 0.50% above its opening price.

    AUD/USD technical viewpoint

    “Still far from its recent highs, the technical outlook is bullish, as in the 1 hour chart, the price has quickly recovered on brief dips below a bullish 20 SMA, whilst the technical indicators have turned higher after a limited downward move, well above their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price held above its 200 EMA, while it's currently advancing above a mild bearish 20 SMA, and the technical indicators are crossing their mid-lines towards the upside. The pair has met selling interest in the 0.7240/60 region since early February, which means that it needs to break above this level to extend its rally.”

    Support levels: 0.7160 0.7115 0.7070. Resistance levels: 0.7210 0.7260 0.7300.
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