28 May 2014
AUD/USD starting to drop away?
FXStreet (Guatemala) - AUD/USD is trading at 0.9254, down -0.05% on the day, having posted a daily high at 0.9270 and low at 0.9250.
AUD/USD has started to lose grip after its rebound into Asia although the FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish. Meanwhile, Strategists at Bank of America Merrill Lynch explained that their core market view remains to sell AUD/USD on rallies toward 0.95. “This is consistent with the above analysis that suggests the RBA becomes more likely to talk down the AUD if the RTWI appreciates roughly 3% from current levels without a corresponding change in its terms of trade and/or interest rate differential”. However, they also added that if the recent decline in iron ore prices proves deeper and longer than we expect, it will certainly increase the risk of the RBA talking down the currency in its future communication”.
AUD/USD Levels
Spot is presently trading at 0.9256, and next resistance can be seen at 0.9257 (Daily Classic PP), 0.9259 (Weekly High), 0.9259 (Daily Open), 0.9270 (Daily High) and 0.9272 (Weekly Classic PP). Support below can be found at 0.9254 (Hourly 20 EMA), 0.9250 (Daily Low), 0.9243 (Hourly 100 SMA), 0.9234 (Daily Classic S1) and 0.9232 (Yesterday's Low).
AUD/USD chart formations
Regarding candlestick formations, we can see Doji formation on the 4-hour.
AUD/USD has started to lose grip after its rebound into Asia although the FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish. Meanwhile, Strategists at Bank of America Merrill Lynch explained that their core market view remains to sell AUD/USD on rallies toward 0.95. “This is consistent with the above analysis that suggests the RBA becomes more likely to talk down the AUD if the RTWI appreciates roughly 3% from current levels without a corresponding change in its terms of trade and/or interest rate differential”. However, they also added that if the recent decline in iron ore prices proves deeper and longer than we expect, it will certainly increase the risk of the RBA talking down the currency in its future communication”.
AUD/USD Levels
Spot is presently trading at 0.9256, and next resistance can be seen at 0.9257 (Daily Classic PP), 0.9259 (Weekly High), 0.9259 (Daily Open), 0.9270 (Daily High) and 0.9272 (Weekly Classic PP). Support below can be found at 0.9254 (Hourly 20 EMA), 0.9250 (Daily Low), 0.9243 (Hourly 100 SMA), 0.9234 (Daily Classic S1) and 0.9232 (Yesterday's Low).
AUD/USD chart formations
Regarding candlestick formations, we can see Doji formation on the 4-hour.