AUD/USD to 0.7281 on Yellen, trgt 4th Dec high

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - AUD/USD was sold off on the release of the partial statement from the FOMC and unanimous vote to hike by 25bps as widely expected.

    Also, as expected, volatility is playing out and we have seen a correction on the downside in the Aussie and the greenback is turning lower. AUD/USD has rallied back onto the 0.72 handle from previous lows post Fed hike at 0.7177.

    We are now trading through Yellen's presser and looking out for additional clues as to the Fed's outlook for 2016 and beyond. There is some concern on the greenback coming in as to the strength of the currency, and the Aussie is taking off on that. She also said that this move marks the end of an extraordinary period while expecting inflation to rise to target as transitory effects from low oil dissipate. However, overseas developments pose a risk. Yellen says all is data dependent still while stronger growth or faster inflation will warrant steeper pace of hikes.

    AUD/USD levels

    Technically, AUD/USD has rallied back above the 4hr 200 SMA at 0.7197 and the 55 DMA at 0.7198. We are now testing the 100 SMA on the 4hr at time of writing at 0.7252 with a high of 0.7281. However, only above, first, 0.7333 and 0.7381/85, the October high and 4th Dec high and the 38.2% retracement and the 0.7443 200 day ma will allow for further bullish trends to evolve. For now, better offered.
    For more information, read our latest forex news.

Share This Page

free forex signals