11 Aug 2015
AUD/USD trades below 0.7300 in the aftermath of PBoC move
FXStreet (Buenos Aires) - The Australian dollar tumbled after China's central bank devaluate the Yuan, with the AUD/USD back below the 0.7300 level by the end of the day.
Dollar's weakness saw the pair advance up to 0.7439 at the beginning of the day, also a strong static resistance level. Given the short-lasting recovery and the fact that the pair has quickly gave back its latest gains, the bearish potential has increased exponentially, with fresh year lows now at sight.
AUD/USD technical outlook
“Short term, the 1 hour chart shows that the 20 SMA has accelerated its decline and stands now around 0.7320, while the RSI indicator holds near oversold levels and the Momentum indicator hovers below its 100 level after correcting oversold readings”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators head sharply lower, despite being near oversold levels, whilst the 20 SMA gains a bearish slope, well above the current price and supporting a new leg lower, particularly on a break below 0.7260, the immediate support”.
Support levels: 0.7260 0.7210 0.7150. Resistance levels: 0.7320 0.7370 0.7410.
Dollar's weakness saw the pair advance up to 0.7439 at the beginning of the day, also a strong static resistance level. Given the short-lasting recovery and the fact that the pair has quickly gave back its latest gains, the bearish potential has increased exponentially, with fresh year lows now at sight.
AUD/USD technical outlook
“Short term, the 1 hour chart shows that the 20 SMA has accelerated its decline and stands now around 0.7320, while the RSI indicator holds near oversold levels and the Momentum indicator hovers below its 100 level after correcting oversold readings”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators head sharply lower, despite being near oversold levels, whilst the 20 SMA gains a bearish slope, well above the current price and supporting a new leg lower, particularly on a break below 0.7260, the immediate support”.
Support levels: 0.7260 0.7210 0.7150. Resistance levels: 0.7320 0.7370 0.7410.