AUD/USD bears menacing on the 0.71 handle
By FXStreet FXStreet (Guatemala) – AUD/USD is currently trading on the offer below a high of 0.7255 and has marked a low of 0.7096 while the 0.71 remains under pressure.
AUD/USD is being punished back to the downside amidst dollar strength while we move into holiday season with repatriation of flows into the US dollar accelerated by the Fed interest hike yesterday. Gold prices initiated the severe downside in the Aussie today with oil and metals dragging along the bottom of the bearish trends. Copper making lows of 2.0330 in a continuation of the downside from above 2.0800 yesterday, Gold collapsing to make lows of $1,047.53 form $1,078 yesterday pre FOMC while oil marks a fraction away from 14th Dec lows of $34.51bbl WTI.
AUD/USD levels
Technically, Valeria Bednarik, chief analyst at FXStreet explained the bias is still towards the downside, “Albeit in the short term, the technical indicators have lost their bearish strength near oversold territory, while in the 1 hour chart, the 20 SMA has turned sharply lower above the current level, now acting as a dynamic resistance around 0.7165. In the 4 hours chart, the pair fell further below its 200 EMA, while the 20 SMA is gaining bearish …read more
Source:: FX Street
