AUD/USD moves away from six-month low
Apart from a minor leap mid-session, the Aussie showed lack of volatility on Friday.
It tested the 0.75 mark for most of the session but nevertheless failed to breach this line. Given that the pair has breached the 55-hour SMA, this moving average could delay its attempts to return near the 0.75 area.
Technical indicators show mixed results. On the one hand, there is still some upside potential that could be realised during the following trading hours. The upside target is likely to be the 100– and 200-hour SMAs and the weekly PP circa 0.7560.
On the other hand, some indicators point to strong bearish momentum that is likely to prevail if the 55-hour SMA is breached to the downside. The Aussie then could move below its six-month low of 0.7502. The monthly S1 at 0.7487 is expected to limit any further falls.
It tested the 0.75 mark for most of the session but nevertheless failed to breach this line. Given that the pair has breached the 55-hour SMA, this moving average could delay its attempts to return near the 0.75 area.
Technical indicators show mixed results. On the one hand, there is still some upside potential that could be realised during the following trading hours. The upside target is likely to be the 100– and 200-hour SMAs and the weekly PP circa 0.7560.
On the other hand, some indicators point to strong bearish momentum that is likely to prevail if the 55-hour SMA is breached to the downside. The Aussie then could move below its six-month low of 0.7502. The monthly S1 at 0.7487 is expected to limit any further falls.
Comment:
On Thursday the full breaking and ignoring of the previous long term and short term patterns on the AUD/USD could be observed. However, the breaking of those patterns could be expected.
The reason for that was the fact that the currency exchange rate had rebounded against the most dominant pattern’s support earlier this week. Due to that it can be expected that soon the borders of the newly developing medium and long term patterns will reveal themselves.
Although, one needs to take into account that previous patterns are still going to play a minor role, as their resistance’s turn into support levels.
The reason for that was the fact that the currency exchange rate had rebounded against the most dominant pattern’s support earlier this week. Due to that it can be expected that soon the borders of the newly developing medium and long term patterns will reveal themselves.
Although, one needs to take into account that previous patterns are still going to play a minor role, as their resistance’s turn into support levels.
AUD/USD has not made significant positioning changes since last session. After falling slightly lower below the weekly PP and the 200-hour SMA late on Tuesday, the Aussie re-tested the session high of 0.7580.
The weaker-than-expected US Core CPI released mid-session contributed to the strengthening of the Australian Dollar. The pair shot up 30 pips within the first five minutes after the release. Thus, it was able to reach the upper boundary of the three-month descending channel.
The nearest northern barrier is the weekly R1 and the monthly PP at 0.7510 that could provide strong resistance.
Conversely, the Aussie is supported by the 200-, 100– and 55-hour SMAs and the weekly PP circa 0.7560. The impact of the FOMC fundamentals could be enough to breach one of the aforementioned levels.