18 May 2015
AUD/USD: Bears taking control below 0.80 handle
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7980 with a high of 0.8053 and low of 0.7975.
AUD/USD is carving out the downside while the greenback is in favour this market around, putting the major in to a bearish position and pressuring the rising support line from 0.7688 and the late April rally that met 0.8162 the recent highs. Fundamentally, the doves are out in force post Lowe's speech overnight that gave markets the signal that if data is to deteriorate, the RBA will be prepared to cut rates accordingly.
Technically, Valeria Bednarik, chief analyst at FXStreet noted that in the 4 hours chart, the price has broken below its 20 SMA that turned bearish around 0.8040. Meanwhile, 0.7987 is where the 5 SMA and pivot are positioned with plenty of downside open targeting 0.7920.
AUD/USD is carving out the downside while the greenback is in favour this market around, putting the major in to a bearish position and pressuring the rising support line from 0.7688 and the late April rally that met 0.8162 the recent highs. Fundamentally, the doves are out in force post Lowe's speech overnight that gave markets the signal that if data is to deteriorate, the RBA will be prepared to cut rates accordingly.
Technically, Valeria Bednarik, chief analyst at FXStreet noted that in the 4 hours chart, the price has broken below its 20 SMA that turned bearish around 0.8040. Meanwhile, 0.7987 is where the 5 SMA and pivot are positioned with plenty of downside open targeting 0.7920.