FxWirePro: AUD/USD Slips Below 0.78 Handle, Good to Go Short, Target 0.7690

FxWirePro: AUD/USD Slips Below 0.78 Handle, Good to Go Short, Target 0.7690

20 April 2016, 07:03
Roberto Jacobs
0
20

FxWirePro: AUD/USD Slips Below 0.78 Handle, Good to Go Short, Target 0.7690

  • AUD/USD down from 10-month highs hit on Tuesday's trade as sentiment soured across markets as oil turned back in the negative territory. 
  • RBA Governor Glenn Stevens’ speech yesterday was globally focused and had no impact on the AUD.  
  • The major is likely to track risk sentiment and commodity prices as oil has clearly shaken off the Doha drop. A further rally in equities will be supportive of the AUD. 
  • On the Technical side, the pair has edged below the 0.78 handle (minor trendline support and psychological level) and is currently trading with a negative bias. 
  • 4H 10-SMA support at 0.7781 is holding on the downside, breaks below will accentuate downside. 
  • Pair finds next support at 0.7750 (5-DMA), 0.7745 (Apr 18th lows), and then 0.7680 (Apr 15th low, 4H 55EMA). 
  • On the upside, pair finds stiff resistance at 0.7830 (rising trendline), bearish invalidation only on breaks above.

Recommendation: Good to short rallies around 0.7785/90, SL: 0.7830, TP: 0.7750/0.77/0.7690 

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