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AUD/USD stays near 7-month high amid Iron ore spike

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The AUD/USD pair stays near 7-month high in the US session amid sharp spike in Iron ore prices and increasing prospects of oil price recovery.

    Eyes 23.6% Fibo resistance

    At 0.7430, the spot is trading near its 7-month high and appears on track to test 0.7459 (23.6% of 0.9505-0.6827). The bid tone around Aussie strengthened as Iron prices jumped most on record. Furthermore, money managers pushed bullish bets in oil to record high, indicating the oil recovery may continue in days ahead.

    The immediate focus now is on the FOMC member Brainard speech, which will be followed by Fed’s Stanley Fischer’s comments.

    AUD/USD Technical Levels

    The immediate hurdle is seen at 0.7459 (23.6% of 0.9505-0.6827), above which the spot could target 0.7500 handle, which if taken out shall open doors for a rally to 0.7533 (Apr 2 low). On the other hand, a breakdown if support at 0.7385 (Dec 4 high), under which the spot could drop to 0.7327 (Dec 31 high). A break lower would expose 200-DMA at 0.7253.
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