18 Aug 2015
AUD/USD: 20 MA offering immediate support - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the AUD/USD pair fell down to fresh multi-year lows at 0.7214, but erased most of its weekly losses by the close.
Key Quotes:
"The Aussie was among the most affected by China's devaluation, but ever since RBA's Governor, Glenn Stevens, said that the AUD depreciation has done enough to help the country's economic growth, market sentiment has flipped to bullish for the antipodean currency. Still, the pair is unable to advance beyond the 0.7400 level, with intraday sellers taking their chances around the level.
Nevertheless, the daily chart shows that the pair has managed to hold above its 20 SMA that lost its bearish slope and now stands flat around 0.7335, providing an immediate support. In the same chart, the Momentum indicator presents a mild bullish tone above its 100 level, whilst the RSI indicator remains flat in neutral territory, still failing to confirm a more sustainable rally.
Key Quotes:
"The Aussie was among the most affected by China's devaluation, but ever since RBA's Governor, Glenn Stevens, said that the AUD depreciation has done enough to help the country's economic growth, market sentiment has flipped to bullish for the antipodean currency. Still, the pair is unable to advance beyond the 0.7400 level, with intraday sellers taking their chances around the level.
Nevertheless, the daily chart shows that the pair has managed to hold above its 20 SMA that lost its bearish slope and now stands flat around 0.7335, providing an immediate support. In the same chart, the Momentum indicator presents a mild bullish tone above its 100 level, whilst the RSI indicator remains flat in neutral territory, still failing to confirm a more sustainable rally.