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26 Apr 2016
AUD/USD: volatility about to pick up? 0.77 handle still intact
AUD/USD has been unable to maximize in dollar weakness overnight as investors still stay on the sidelines ahead of what could otherwise be a busy week.
The market opened absent of traders in Australia out on holiday, but today liquidity returns and activity should, no doubt, pick up with U.S. data and then CPI's from Australia tomorrow. Commodities will also be monitored carefully with some profit taking playing out overnight in a bearish drift weighing on the Aussie.
AUD/USD levels
AUD/USD's recent rally made it to the 0.7850 target level as the 38.2% retracement of move down from 2014 to 0.7836, however, profits were taken and we enter a phase of consolidation on the 0.77 handle. Valeria Bednarik, chief analyst at FXStreet noted that the 4-hours chart shows that the 20 SMA heads sharply lower around 0.7750, now the immediate resistance. Should the pair continue to struggle below there in the near term, the 0.77 handle will come under pressure and a break of 0.7680 opens the two-month support line that can be seen at 0.7656.
The market opened absent of traders in Australia out on holiday, but today liquidity returns and activity should, no doubt, pick up with U.S. data and then CPI's from Australia tomorrow. Commodities will also be monitored carefully with some profit taking playing out overnight in a bearish drift weighing on the Aussie.
AUD/USD levels
AUD/USD's recent rally made it to the 0.7850 target level as the 38.2% retracement of move down from 2014 to 0.7836, however, profits were taken and we enter a phase of consolidation on the 0.77 handle. Valeria Bednarik, chief analyst at FXStreet noted that the 4-hours chart shows that the 20 SMA heads sharply lower around 0.7750, now the immediate resistance. Should the pair continue to struggle below there in the near term, the 0.77 handle will come under pressure and a break of 0.7680 opens the two-month support line that can be seen at 0.7656.