Monday, October 12, 2015

AUD/USD: bulls getting comfortable on top?

FXStreet (Guatemala) - AUD/USD is stable in a quiet start to the week, consolidating the bull run and bullish close of last week's business at key levels.

We are not getting much action out of AUD/USD at the start of the week while a number of holidays are taking place across the times zones today and we prefer to sit back and look at the week ahead and potential drivers for the price.

AUD/USD has been on a bullish run of late, rallying in the wake of risk appetite improving to some extent while the FOMC are unable to offer more than a possibility that hikes will go up before the year is out depending on conditions, leaving the Aussie free reign to climb higher in the wake of a comeback in commodity prices. The "Big ground made by AUD/USD Bulls" can be read here.

AUD/USD bullish/neutral (Spot 0.7318, above Sep highs, RSI's (14) positive)

AUD/USD rallied through the September highs and onto the 0.73 handle. There is likely support offered by the 20 SMA after it broke the 50 DMA for the first time since 17th June.

The price targets 0.7366 with a break of the weekly 20 SMA at 0.7340 with positive momentum indicators. However, failures could give rise to offers to the 0.72 psychological support. Below 0.72 support, September lows are not a mile off at 0.6940, guarding the 0.6905 and then the 0.6774 2004 low.
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