Monday, 22 May 2017

Aussie meets strong resistance at 0.7500

Commodities currencies are best performers this Monday along with Aussie extending up to 0.7488, highest level seen since May 3rd.  It’s an important level to consider as staying slightly below 0.7500 and it’s an area defined by 38.2% Fibonacci retracement of latest March to May decline together with the upper line of descending trend line. 
The immediate upside momentum is seized by the this threshold. Temporary support  is lying at  the overnight lows having in mind possible close below 0.7385, that would put back the downtrend on the table.
Aussie is approaching key resistance confluence and we should focus on the 0.7429 – 0.7490 range, but upside is capped by the  61.8% Fibonacci retracement at 0.7589 of above mentioned decline. 
The economic calendar has nothing to offer during the upcoming session, but the positive momentum in equities and commodities will possibly drive Aussie gains. 
However, the we should focus  on the structural resistance that is heading towards  0.7500 mark  ans in case of breach, there would be more meaningful breakout in the pair.





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