AUD/USD: bulls step aside in cautious markets

By FXStreet FXStreet (Guatemala) – AUD/USD has been better offered and lost the commitments of the bulls while paring back the gains made yesterday.

The market has started to show some signs of recovery in risk that had been supporting the initial recovery and then the trade balance surprised the upside and took the major to score highs at short-lived levels of at 0.7048 and shy of key resistance of the 200 sma on the hourly at 0.7071.

However, the greenback took off overnight, equities fell and oil dropped again exposing the bulls in the Aussie who stepped aside and allowed for the downside. Now is all about the jobs data from the Australian economy tomorrow while for today, the Yuan fix and stock markets performances will be monitored as markets remain cautious, favouring the bearish bias in the pair.

AUD/USD levels

Technically, Valeria Bednarik, chief analyst at FXStreet explained that the short term picture is bearish also, as in the 1 hour chart, the price is well below its 20 SMA while the technical indicators are hovering near oversold readings. “In the 4 hours chart, the Momentum indicator heads sharply lower, while the RSI indicator accelerates south around 38 and the price extends …read more

Source:: FX Street