AUD/USD upside running into tough resistance

By FXStreet FXStreet (Guatemala) – AUD/USD has scored some space above the 50 SMA at 0.7065 and is looking for a close in positive territory for the week, having made highs yesterday at 0.7099.

AUD/USD has staged a minor recovery on the start of the month’s downtrend and lows that were down to test the resilience of the bulls at the 0.69 handle. The Australian jobs data and Chinese CPI’s supported the Aussie towards the end of the week after a spell of disappointments for the Australian economy over the past few weeks having gained about 2% and ostensibly helped by the stabilization of Chinese markets and higher copper and iron ore prices, as noted by analysts at Brown Brothers Harriman.

AUD/USD rallies to find tough resistance at 0.7191

Technically, Karen Jones, chief analyst at Commerzbank explained that AUD/USD is near term upside corrective and currently we would allow for a near term move higher to approximately 0.7165 (intraday Elliott count). “Rallies are expected to remain capped by the 0.7191 4 month downtrend and 0.7205 (last weeks high). The market will need to overcome the 0.7448 July 21 high in order to negate downside pressure longer term. Below 0.6980 will retarget the 0.6905 recent …read more

Source:: FX Street