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AUD/USD: Sellers in control, hourly 100-SMA eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 26, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The AUD bears appear to have picked-up significant strength over the last hours, knocking-off AUD/USD towards hourly 100-SMA located at 0.7207.

    AUD/USD unable to extend beyond 0.7250

    Currently, the AUD/USD pair trades -0.21% lower at 0.7222, having posted fresh session lows at 0.7214. The resource-linked Aussie remains in the red, despite the rebound in oil and European stocks, which usually boosts the demand for higher-yielding currencies such as the AUD. Both crude benchmarks are up nearly 2%, while the European indices rally almost 2.50%.

    The downside in the AUD/USD pair accelerated mainly on the back of renewed bids seen in the US dollar, with the USD index having recovered losses and trades muted around 97.40 levels. Meanwhile, markets are expected to closely track the USD moves in wake of the upcoming US Q4 prelim GDP report, which may create huge volatility.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7250/56 (psychological levels/ daily high) above which gains could be extended to the next hurdle located at 0.7300/03 (round number/ Jan 4 High). On the flip side, the immediate support located at 0.7207/00 (1h 100 & 50-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7183/72 (10-DMA/ 1h 200-SMA).
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