AUD/USD Rejected from Above 0.7300

AUD/USD Rejected from Above 0.7300

16 May 2016, 20:38
Roberto Jacobs

AUD/USD Rejected from Above 0.7300

The aussie is up against the US dollar on Monday but it failed to hold above the important 0.7300 handle and pulled back trimming gains.

Near 10-week lows

AUD/USD opened the week trading at the lowest level since early March and bottomed at 0.7242 before bouncing to the upside amid a weak US dollar and a recovery in commodities prices. After rising from 0.7250 to 0.7292 on Asian hours, it peaked at the beginning of the American session at 0.7308 and then turned to the downsides.

Price failed to hold above 0.7300 and dropped to 0.7280/85 where currently trades, 20 pips above Friday’s closing price. Last week the pair posted the fourth weekly decline in a row with the first close below the 20-week moving average since February.

On Tuesday, the main event in Australia will be the release of the central bank minutes of the latest meeting (when they lowered the main rate) while in the US, traders will look into CPI numbers.

AUD/USD technical levels

To the upside, resistance levels might be located at 0.7305/10 (daily high), 0.7330/35 (May 6 & 11 low) and 0.7400 (last week high). On the flip side support could be seen at 0.7275 (European session low), 0.7240/45 (daily low) and 0.7200 (psychological).


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