FxWirePro: AUD/USD Consolidates Above 61.8% Fib, Weakness to Resume on Close Below

FxWirePro: AUD/USD Consolidates Above 61.8% Fib, Weakness to Resume on Close Below

20 May 2016, 07:21
Roberto Jacobs
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FxWirePro: AUD/USD Consolidates Above 61.8% Fib, Weakness to Resume on Close Below

  • AUD/USD failed to close below 61.8% Fib of Jan to Apr rally (0.7212) on Thursday.  
  • The pair is now consolidating above the 61.8% Fib level and weakness to resume only on close below. 
  • Positive comments on Australia’s inflation outlook by RBA's Edwards in a WSJ interview likely to keep AUD supported. 
  • Edwards said that there was no urgency to restore inflation to target, adding that inflationary expectations remain anchored. 
  • Recovery in the oil prices and the Asian equities also helping lift demand for higher-yielding currencies. 
  • AUD/USD currently trading around 0.7225, finds stiff resistance at 0.7242. Break above could find next hurdle at 0.7259 (5-DMA). 
  • On the downside 61.8% Fib (0.7212) is immediate support, break below sees next support at 0.7176 (May 19th low). 
  • We had advised a short in the pair (http://www.econotimes.com/FxWirePro-AUD-USD-breaks-618-Fib-hits-fresh-11-week-lows-on-poor-jobs-data-210104). 
  • Recommend holding for downside. Bearish invalidation above 0.73 


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