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AUD/USD: set up for a big day ahead

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/USD is currently trading at 0.7349 with a high of 0.7355 in early Asia and a low of 0.7346.

    AUD/USD remains in positive territory having made a good recovery from the recent lows 0.7121 in late Feb and moving through the 200 dma. The Aussie has started to consolidate the bid now as we progress towards Tokyo in early Asia having been the biggest gainer on the US day, supported by strong flows in metal prices, including copper that was 1.33% up in to the US close. We now await the nonfarm payrolls that could be a mover one way or another and on a poor show, the double top in the daily sticks could come under pressure.

    Nonfarm Payrolls: focus this time will be on wages

    AUD/USD levels

    Technically, AUD/USD is on the recovery from below the 0.72 handle and has penetrated the 200 dma at 0.7253 and is headed to test the recent resistance and previous double top at 0.7382. 0.7439 is a key objective in the near term being the August 2015 highs.

    Valeria Bednarik
    , chief analyst at FXStreet explained that in the short-term, the 1 hour chart shows that the 20 SMA maintains a strong upward tone below the current level, while the technical indicators have lost their upward strength near overbought levels, but with the price holding near its daily high, chances of a downward correction are quite limited. "In the 4 hours chart, the Momentum indicator has resumed its advance in extreme overbought territory, while the RSI indicator hovers around 77, also suggesting bearish chances are limited, even as a bare correction."
    For more information, read our latest forex news.

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