Thursday, October 8, 2015

AUD/USD testing the pivot in bearish phase of consolidation

FXStreet (Guatemala ) - AUD/USD spiked on the minute charts and is a little volatile on a sharp round turns between 0.7202 and recent high of 0.7216 having climbed up from the base 0.7190 in the Tokyo open.

Markets are jittery as China comes back to the table after a week-long holiday allowing investors a break from the doom and gloom and taking opportunity of volatility and an improvement in the risk appetite we have seen over the last two weeks. Infact, we may be in for a bullish surprise with China's CSI 300 futures soaring 4% in recent trade.

the People's Bank of China (PBOC) set the yuan reference rate at 6.3505 after last week's close before the holidays of 6.3571, so a big rise.

We now await the FOMC minutes tomorrow and a fully packed day of risk events, as noted here by analysts at Westpac Banking corporation.

Technically, the short-term bullish analyses of earlier has come to fruition that was based on RSI offering further upside potential and the 50 DMA broken for the first time since June's highs of this year.

The target was the base of the cloud at 0.7230 and now R2 at 0.7246 should the rally have any legs left? Hourly momentum indicators seem to think not as the price struggles to maintain a bullish form on the 0.72 handle. RSI is heading south towards its mid point and the pivot has been in touching distance at 0.7198, and glancing at the chart, here we are at time of writing in fact. (A title in the making ).

However, a break to the upside on anything fundamental would bring in the 0.7280 level to focus and closes above there would confirm the bullish trend is intact.
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