AUD/USD: Spikes Higher as Stops Above 0.7730 Tripped
AUD/USD
has found heavy buying interest at the London open, rising from sub
0.77 levels all the way towards 0.7742, gunning through stops above
0.7725/30 in the process, with more being reported at 0.7750 and 0.7760.
AUD buyers take out topside stops
The
rise in the Aussie follows a grab of liquidity below 0.77, before
intrinsic values for the Aussie started to move aggressively north to
support AUD buys. The VX declining, coupled with the DXY index
selling-off and copper prices recovering off lows, has allowed buyers of
the high-yielding currency to gain traction, and with the smell of
stops above 0.7730, one would think it was inevitable to hunt these
positions as the area represented a nice pay-check liquidity following
the consecutive rejections off the level this week.
AUD/USD technicals
The
London rally, which has extended just short of 50 pips, looks now quite
overstretched, with 0.7745/50, last Friday's POC (point of control) a
critical support, ahead of 0.7760, where more stops by prime brokerages
have been reported, according to market sources. On the downside, any
pullback, given the strong bullish momentum, should fin initial area of
buying interest circa 0.7730 (old resistance turned support) ahead of
0.7715 (POC this week), followed by 0.77 round number.
