Tuesday, 15 August 2017

Aussie extends weakness after RBA minutes and US upbeat data

Aussie continues to run on the downside and today dropper to four week  low, having marked daily low at 0.7805 with closure around 0.7820. 
The minutes of the latest RBA rate decision are hinting some disinflationary impact of the strong currency and are taking note of a potential economic slowdown in case the Australian Dollar extends the rally. 
However, the pair’s decline was much more supported by the US Dollar’s strength today due to the US upbeat retail sales report today. 
The four-hour time frame is showing that the price has crossed to below its 20-day SMA, while the 200-day SMA pushed above it. RSI ans stochastic are displaying strong bearish momentum and are currently located within oversold territories. 
Strong support is seen at 0.7785 (July’s low) and in case of breaking it, bears might attempt next one at 0.7740. Looking to upside, first resistance is located at 0.7860 and second at the physiological level at 0.7900.


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