AUD/USD: short squeeze; seems rallies are a fade on 0.7000

By FXStreet FXStreet (Guatemala) – AUD/USD showed that it has some life still, despite the recent GDP and retail numbers and deflationary headwinds circling the Australian economy and heads of the RBA decision makers.

AUD/USD 0.6980/ 0.7000 is key

0.7000 has been a well-protected area of support, with a dip or two below, but it is a strong level and while the bears were unable to penetrate, the bulls were waiting to pounce and today’s risk appetite gave the commodities a boost which was the opportunity the bulls were waiting for on a short squeeze to 0.7063 before falling over and back to 0.7020 support and 50 SMA on the 1hr sticks.

To the downside, if 0.7000 gives out again, bears need a break below the 0.6980 level and closes below this 3-month support line ahead of the June 2004 lows at 0.6776.
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Source:: FX Street