AUD/USD under pressure below 0.7240, risk-off persists

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The AUD/USD pair failed several recovery attempts near 0.7240 region and now consolidates near the lower-bound of today’s trading range amid omnipresent risk-off market profile.

    AUD/USD weighed by lower oil, stocks

    Currently, the AUD/USD pair trades modestly flat at 0.7222, recovering from session highs posted at 0.7213 post-China open. The Aussie continues its struggle and consolidates the previous heavy gains, with markets giving up higher-yielding currencies such as the AUD amid worsening risk conditions, as falling oil prices curb risk appetite.

    However, the losses remain restricted as the greenback corrects lower against its major peers after rallying nearly 1% on Monday. Attention now remains on the US macro updates due later today ahead of the Aus Capex and US durable goods and prelim GDP due later this week.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7247/50 (Feb 22 High/ round number) above which gains could be extended to the next hurdle located at 0.7277 (Daily R1). On the flip side, the immediate support located at 0.7205/00 (daily pivot). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7184/66 (200-DMA/ 1h 50-SMA).
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