Wednesday, 25 April 2018

AUD/USD Bears are aiming 0.7500 area


The AUD/USD pair tumbled to fresh 2018 lows, down with 0.45% today and currently trading at 0.7561. US bulls are back in game supported by the rising 10-years Treasury yields, which reached the impressive 3.02 %. While Australia is having holiday today, Aussie is conducted by  the US dollar dynamics.
Technically speaking the short term outlook remains bearish. On the four hour time frame the price is developing well below its moving averages. The 20-day SMA is keeping its bearish slope while the 100-day and 200-day SMAs are starting to turn south after staying flat the last two weeks. RSI and stochastic are located with extreme oversold areas
however there is scope for further declines.
Last week the pair decisively broke the 61.8 % Fibonacci retracement of latest December to January bullish run at 0.7745. During the past two months the price was moving back and forth around it and switching from support to restisrance several times. The above mentioned indicators
support additional declines and bears now are aiming the 0.7500 area and thus the same Fibonnacci retracement would be completed at 100%.
The macro agenda is not offering any significant releases and with Australian market closed the US bulls are setting the tone.


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