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AUD/USD meeting offers in overbought territory

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    AUD/USD is currently being supported at 0.7220 and a touch above the 20 sma on the hourly chart located at 0.7213.

    The Aussie has had an impressive start to the week, supported on demand for low prices in the commodity sector, specifically with oil making a recovery and copper making strong gains yesterday and continuing on overnight markets, albeit coming under pressure today on the hourly sticks.

    While there is little as far as scheduled events for today for the Aussie, China has just injected a large amount of funds (130b Yuan) on to the money markets while they fixed the Yuan weaker at a central USD/CNY rate of 6.5273 vs yesterday's at 6.5165. For the day ahead in the US, consumer confidence is released along with housing data while we await capex for Australia this week.

    AUD/USD levels

    AUD/USD has rallied to 0.7243 the high so far and is feeling supply here in overbought conditions on the hourly sticks, with RSI (14) now backing below 70 to 68 at time of writing as the price tails off and relieves the momentum indicator a little. The 200 dma is located at 0.7282 and a move above there with closes completes a 100% reversal of the 2016 downside. To the downside, S1 is located at 0.7165 and S3 at 0.7073. A break of the 0.70 handle and below 0.7023 Feb low opens 0.6834 2016 lows.
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