Wednesday, October 21, 2015

AUD/USD: between key levels below 1hr200 SMA

FXStreet (Guatemala) - AUD/USD is currently trading at 0.7262 having dropped back from the London highs overnight and below the 200 SMA on the hourly chart.

We are trading in a neutral environment for AUD/USD within the cluster of hourly MA's awaiting impetus and directional strength one way or the other. The Aussie has settled down after an impressive convincing bullish trend through the 20 and 55 DMA on the daily sticks that commenced at the start of October's business.

However, a lack of momentum here and repeated failures bring the broader bearish trend back into the picture while markets continue to monitor the RBA's mood (upbeat) and US data in respect of timings of Central Bank actions. Analyst at Westpac explained that in pricing for another cut from the RBA has eased a little further, to 23% for Nov, just under 50% by Dec.

AUD/USD levels

Technically, analysts at Societe Generale explained 0.7240 as a key area to buy into while the 0.7385 Fibo retracement is a key upside target ahead of the 0.7367 2014-2015 downtrend and August high at 0.7439. 0.7200 is a further key level of support on the downside and a break and daily close below could enforce a continuation of a recovery in the greenback.
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