AUD/USD: minor recovery to test 0.72 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - AUD/USD is entering the Asian session with more open wounds than a shark attack off Bondi beach. Risk is not in favor, with Global stock markets dropping through daily lows, to the lowest point since October in fact, on the back of China.

    China was the catalyst yesterday and that followed through overnight. We went from a bit of stability on the 0.72 handle after yesterdays session to a full on break of the 0.72 handle to 0.7155 the overnight low. There was a little recovery in the pair by the end of the US session as risk improved, but nevertheless, the antipodeans are not performing in a good light and more downside will be expected on a health jobs report in the US this week.

    AUD/USD levels

    Technically, 0.7199 is where the 20 SMA on the hourly sticks is located and a break through there is required to allow for some near term recovery on the upside. However the 100 DMA at 0.7173 is pulling in the interest above the lows of 0.7155. Below there we have the 3-month uptrend at 0.7086 should be respected as well as the 0.7017 November low and the September low is at 0.6940 for the downside levels.
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