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AUD/USD struggles to extend recovery above 0.7700

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The AUD/USD’s recovery finds stiff hurdle ahead of 0.77 handle, with more than half of the bearish opening gap filled in amid stabilizing oil prices and a broadly weaker US dollar.

    AUD/USD continues to recover from 0.7631 daily lows

    Currently, the AUD/USD pair now drops -0.32% to 0.7700, flirting with session highs reached at 0.7705 last hour. The sentiment towards higher-yielding assets is seen improving over the last hours as the oil price recovery gains further traction. Hence, markets now look to take the yield advantage by bidding the Aussie and thus, helping it fill the bearish gap.

    Moreover, upbeat tone in the gold prices amid safe-haven demand, also aid the recovery in the resource-linked AUD/USD. Nothing of relevance in terms of macro news for the Aussie today, and hence, focus remains on the oil and stock markets. Besides, Fed Dudley’s speech will be closely heard for any hint on the Fed rate hike prospects.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7739/50 (2016 highs) above which gains could be extended to the next hurdle located at 07800 (round number). On the flip side, the immediate support located at 0.7678/72 (5 & 10-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7622/21 (1h 200-SMA/ 20-DMA).
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