AUD/USD: Stablising After Heavy Supply
AUD/USD
is making a bullish case for itself on the wider picture, but has
suffered a strong bout of supply on the bearish opening gap for this
Asian start to the full business week.
AUD/USD
went from last week's close of 0.7719 to make a low of 0.7640 on the
1hr sticks and then 0.7630 for the low so far for today. The bearish gap
came as the news of further meetings of the world oil ministers who are
failing to find a concord between themselves. Instead, the Saudis are
leaving the taps on in the absence of Iran being a part of the
consortium in agreement. That immediately lead to risk-off conditions
and put pressure on the commodity sector's related currencies, such as
the Aussie. We are, however, seeing some stability as we progress in to
Chinese markets.
AUD/USD levels
AUD/USD
has been oscillating below the 100 sma on the 1hr chart at 0.7672 since
the bearish opening gap today, stablising at the vicinity of 0.7630/40
and a little higher than the 200 sma on the same time frame at 0.7616. A
break of 0.7600 and the 11th April low of 0.7580 opens the start of
April recovery lows at 0.7509. 0.7416 is the 16th March low and the
October and November highs lie at 0.7384/81.
Should the price
continue to stabilise throughout European markets above 0.7500, the
immediate recovery target would be to close the gap and get back to last
week closing prices on the 0.77 handle with the pivot located at
0.7713. R1 is located at 0.7746 and R2 at 0.7768.
(Market News Provided by FXstreet)
