23 Feb 2015
AUD/USD: Stuck in neutral above daily 20 DMA
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7824 with a high of 0.7849 and a low of 0.7827.
AUD/USD is pressing the top of the sideways channel that was established the beginning of February and with the majority of risk in the New Year variables/uncertainty for the pair somewhat made clearer, we are left with the Central Banks divergences to contend with and data impacts. Hence we are in neutral and sideways fundamentally. However, although we have been given a sense of a neutral theme from the RBA and Fed, we know that banks can surprise, just as the BoC did so recently.
Technically, we remain in the channel with the 20 SMA coming in as first support at current price with 0.7850 acting as hourly resistance. Valeria Bednarik, chief analyst at FXStreet explained that the pair needs to advance beyond the 0.7850 price zone to be able to extend its gains towards the 0.7890, while a decline below 0.7770 should favor a downward continuation towards the 0.7730 price zone. Meanwhile, above the 20 day ma lies the downtrend at 0.7990 and the 7th Jan low at 0.8034 as next key resistances and a close above the latter could be the signal that the bulls require and to alleviate the downside pressure.
AUD/USD is pressing the top of the sideways channel that was established the beginning of February and with the majority of risk in the New Year variables/uncertainty for the pair somewhat made clearer, we are left with the Central Banks divergences to contend with and data impacts. Hence we are in neutral and sideways fundamentally. However, although we have been given a sense of a neutral theme from the RBA and Fed, we know that banks can surprise, just as the BoC did so recently.
Technically, we remain in the channel with the 20 SMA coming in as first support at current price with 0.7850 acting as hourly resistance. Valeria Bednarik, chief analyst at FXStreet explained that the pair needs to advance beyond the 0.7850 price zone to be able to extend its gains towards the 0.7890, while a decline below 0.7770 should favor a downward continuation towards the 0.7730 price zone. Meanwhile, above the 20 day ma lies the downtrend at 0.7990 and the 7th Jan low at 0.8034 as next key resistances and a close above the latter could be the signal that the bulls require and to alleviate the downside pressure.