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AUD/USD off 7-yr lows, corrects swiftly to 0.6870

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The AUD/USD pair halted its free-fall and reversed a part of the slide, now retreating from close to fresh seven-year lows.

    AUD/USD tests Friday’s low and retreats

    Currently, the AUD/USD pair sinks -0.57% to 0.6868, quickly retracing nearly 40 pips from session lows struck at 0.6828. The risk-off sentiment seems to have eased a bit, with the oil and stocks paring losses, which offers some respite to the AUD bulls.

    In the last hours, AUD/USD plummeted to almost seven-year lows after the global market turmoil intensified after both crude benchmarks fell over 3% to multi-year troughs. At the moment, both crude benchmarks are making recovery attempts and trade -2.50%.

    However, the tepid bounce in the Aussie is expected to soon fade as persisting risk-aversion is continue to keep a lid on the prices. While the US CPI data is due for release in the NY session, and a positive outcome is expected to trigger an USD rally and further weigh on the Aussie.

    AUD/USD Levels to watch

    The pair heads higher and finds the immediate resistance at 0.6907/12 (1h 100-SMA/daily high) above which gains could be extended to the next hurdle located at 0.6950 (1h 200-SMA). On the flip side, the immediate support located at 0.6824 (Jan 15 low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6800 (Seven-year low).
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