AUD/USD testing the key 200 SMA on 1hr sticks

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 26, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - AUD/USD is currently trading at 0.7257 with a high of 0.7269 and a low of 0.7207.

    AUD/USD marches forward on poor homes sales from the US, renewed risk sentiment with the ECB likely easing further, China cutting interest rates, although immediate impact was short lived, and metals bouncing back overnight, albeit meeting supply again in London and the US shift.

    However, the key data for the Aussie will come in the CPI data on Wednesday. This might show the trimmed mean CPI rise to 2.5% y/y from 2.2% and that is offering some support to AUD/USD as well.

    AUD/USD levels

    Technically, through the 200 SMA on the 1hr sticks and subsequent bids into 0.7300 territory, we are still looking at the key upside target of the 0.7385 Fibo retracement that is guarding the 0.7367 2014-2015 downtrend and the August high at 0.7439. To the downside, the psychological 0.7200 level could be sticky ahead of the 0.7180 breakout point that with any daily closes below there, bears look for a continuation to test the bulls commitments at the key psychological support of 0.7000.
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