AUD/USD: Stops above 0.72 taken out, worth 20/25 pips pop

By FXStreet FXStreet (Bali) – AUD/USD has spiked over 25 pips from 0.72 round all the way up to 0.7225 after a successful buyign campaign that managed t squeeze shorts protecting the area just above 0.7200, where today’s R1 was found.

Intrinsic value not moving in tandem with AUD/USD

Despite the rise in the Aussie, with the overstretched move courtesy of stop loss orders being taken out, the appreciation is not being justified by moves in base metals nor Australia vs US 10-yr yield spreads at present. While the momentum may continue, as algos keep the bid on, intrinsic value for the pair is not moving in tandem for now, a factor to bear in mind.

AUD/USD technicals

According to Valeria Bednarik, Chief Analyst at FXStreet: “From a technical point of view, in the 4 hours chart, the price is above a bearish 20 SMA and below the 200 EMA, while the Momentum indicator heads sharply higher above its 100 level, rather reflecting the intraday advance than suggesting further gains. At this point, the pair needs to advance beyond the 0.7240 level to confirm a more sustainable rally during the upcoming sessions.”
For more information, read our latest forex news. …read more

Source:: FX Street