AUD/USD: Risk of bearish breakout below 0.72 – FXStreet
By FXStreet FXStreet (Bali) – The inability of the Aussie to recover the USD 07200 mark, according to Valeria Bednarik, Chief Analyst at FXStreet, increases the possibility of a bearish breakout.
Key Quotes
“The Australian dollar came under heavy selling pressure at the beginning of the day, as commodities, and particularly precious metals, traded heavily during a thin Asian session. Cooper fell to a new six-year low, iron ore prices plummeted again, whilst gold prices continued hovering near its recent five-year lows.”
“The AUD/USD pair fell down to 0.7158 before bouncing some, but remains unable to recover the 07200 mark as the day ends, which increases the possibility of a bearish breakout.”
“The 1 hour chart shows that the price is above a bearish 20 SMA, whilst the technical indicators hold flat above their mid-lines, denying a short term bearish continuation.”
“In the 4 hours chart, the price is above a bullish 20 SMA, whilst the Momentum indicator is crossing its mid-line upside down, and the RSI indicator holds around 55, in line with the shorter term perspective.”
“The pair needs to accelerate below 0.7150 to confirm further declines, towards 0.7070 for this Tuesday.”
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Source:: FX Street
