AUD/USD: moving into critical bears territory

By FXStreet FXStreet (Guatemala) – AUD/USD dropped away from the MA cluster on the hourly time frames and printed a low of 0.7210 from the 20/50 SMA cross at circa 0.7250 in Asia.

The major commodity currency is making a minor recovery in the US shift as bulls defend the 0.72 handle. There are a lack of drivers as we progress through the week and focus remains on Central Banks while the RBA holds pout and the Fed may not hike until next year and price driven by risk mood and commodity price fluctuations.

AUD/USD levels

Analysts at UOB explained, “while the 0.7310 resistance capped as expected, the subsequent price action after the high of 0.7298 has been mixed. 0.7310 remains as a strong resistance but….likely in a broad 0.7200/0.7385 consolidation phase.”

0.7385 Fibo retracement is a key upside target ahead of the 0.7367 2014-2015 downtrend and August high at 0.7439. 0.7200 is a further key level of support on the downside and a break and daily close below could enforce a continuation of a recovery in the greenback.
For more information, read our latest forex news. …read more

Source:: FX Street