24 Jul 2015
AUD/USD cracks 0.73, risk of profit-taking
FXStreet (Bali) - AUD/USD has been hit by another wave of selling pressure, resulting on a fresh mulit-year trend low at 0.7270, next area of support as per Jan 2009 high.
AUD/USD collapse over 1 cent since China PMI
The big miss in China's Flash Caixin PMI, lowest in 15 months, has reinforced the bearish sentiment in the Aussie, with the smart money continuing to push the rate lower, which coupled with stop loss orders being triggered sub 0.73, has allowed sellers to capitalize on this latest Chinese disappointment. The rate has collapse over 100 pip since the risk event was out at 1.45GMT.
AUD/USD technicals: Bear leg reaches target?
At present, AUD/USD is a market fully dominated by sellers, with all time-frames screaming sell. That said, from a technical standpoint alone, it is worth noting that the initial bear leg extension from 0.8150 to 0.76 last May has now been replicated by an equally sizeable 6 cents leg down from 0.7850 to 0.7270, suggesting that anywhere between 0.72 (if over-extension) up to 0.7250/70 could serve the purpose of profit-taking distribution swings.
AUD/USD collapse over 1 cent since China PMI
The big miss in China's Flash Caixin PMI, lowest in 15 months, has reinforced the bearish sentiment in the Aussie, with the smart money continuing to push the rate lower, which coupled with stop loss orders being triggered sub 0.73, has allowed sellers to capitalize on this latest Chinese disappointment. The rate has collapse over 100 pip since the risk event was out at 1.45GMT.
AUD/USD technicals: Bear leg reaches target?
At present, AUD/USD is a market fully dominated by sellers, with all time-frames screaming sell. That said, from a technical standpoint alone, it is worth noting that the initial bear leg extension from 0.8150 to 0.76 last May has now been replicated by an equally sizeable 6 cents leg down from 0.7850 to 0.7270, suggesting that anywhere between 0.72 (if over-extension) up to 0.7250/70 could serve the purpose of profit-taking distribution swings.