17 Jul 2015
AUD/USD pressures mount below 0.788 downtrend
FXStreet (Guatemala) - AUD/USD is currently trading 0.7377 with a high of 0.7420 and a low of 0.7366.
AUD/USD has extended the downside with a double bottom on the lows where we are currently recovering from, probing 0.7380 resistance.
The Asian session was absent of much action but the Europeans came in with supply and this was extended with heavy price action tot he downside in London when we went from the 0.74 handle, triggering stops and dropping 30 pips. Simply, the US dollar is in favour now that markets are turning attentions back to Central Banks and global divergences.
Analysts at Scotiabank explained that in respect of the RBA, "Rates markets are similarly pricing in a non-zero probability of a cut before year-end. But now that the Grexit/Shanghai Composite issues seem to have stabilized, Chinese growth is doing better than expected, and Aussie employment appears steady, the focus will be on whether the RBA erases the last of their easing bias and shifts towards more neutral territory, particularly given their ongoing concerns regarding elevated household debt."
Technically bearish below 0.7588 downtrend
Karen Jones, chief analysts at Commerzbank explained that the outlook stays negative while below the 0.7588 downtrend. "We continue to look for losses to the base of the 2 year channel at 0.7177 longer term. Rallies will find initial resistance at 0.7542, the 23.6% retracement and should ideally remain contained by the 0.7588 short term resistance line to remain directly offered."
AUD/USD has extended the downside with a double bottom on the lows where we are currently recovering from, probing 0.7380 resistance.
The Asian session was absent of much action but the Europeans came in with supply and this was extended with heavy price action tot he downside in London when we went from the 0.74 handle, triggering stops and dropping 30 pips. Simply, the US dollar is in favour now that markets are turning attentions back to Central Banks and global divergences.
Analysts at Scotiabank explained that in respect of the RBA, "Rates markets are similarly pricing in a non-zero probability of a cut before year-end. But now that the Grexit/Shanghai Composite issues seem to have stabilized, Chinese growth is doing better than expected, and Aussie employment appears steady, the focus will be on whether the RBA erases the last of their easing bias and shifts towards more neutral territory, particularly given their ongoing concerns regarding elevated household debt."
Technically bearish below 0.7588 downtrend
Karen Jones, chief analysts at Commerzbank explained that the outlook stays negative while below the 0.7588 downtrend. "We continue to look for losses to the base of the 2 year channel at 0.7177 longer term. Rallies will find initial resistance at 0.7542, the 23.6% retracement and should ideally remain contained by the 0.7588 short term resistance line to remain directly offered."