5 Mar 2015
AUD/USD: Upside capped and downside pressures prevail
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7769 with a high of 0.7842 and a low of 0.7752.
AUD/USD continues to trade heavy with the RBA on its back and speculation that the Central Bank will need to take action and soon. The rhetoric from the RBA has been of note that implies that a rate cut is coming soon enough.
Analysts at Scotiabank explained, the correlations between AUD and other assets shifted in strength last month, with the correlation with commodities fading and correlations with interest rates and the broad USD rising. " Sentiment is negative, with a large net short position and consensus expecting fresh lows later this year. We hold a year-end target of 0.73."
Technically, Valeria Bednarik, chief analyst at FXStreet explained that in the 1 hour chart shows that the price develops well below its 20 SMA that accelerates lower, while the technical indicators are bouncing from oversold levels, supporting a short term upward correction towards the critical figure."
"However, with the broader bearishness still in place, the next support comes in at 0.7627 the February low protecting space to 0.7597. Below this level, there is very little support apart from the 0.7335, 50% retracement of the move up from 2001, as noted by Karen Jones, chief analyst at FXStreet.
AUD/USD continues to trade heavy with the RBA on its back and speculation that the Central Bank will need to take action and soon. The rhetoric from the RBA has been of note that implies that a rate cut is coming soon enough.
Analysts at Scotiabank explained, the correlations between AUD and other assets shifted in strength last month, with the correlation with commodities fading and correlations with interest rates and the broad USD rising. " Sentiment is negative, with a large net short position and consensus expecting fresh lows later this year. We hold a year-end target of 0.73."
Technically, Valeria Bednarik, chief analyst at FXStreet explained that in the 1 hour chart shows that the price develops well below its 20 SMA that accelerates lower, while the technical indicators are bouncing from oversold levels, supporting a short term upward correction towards the critical figure."
"However, with the broader bearishness still in place, the next support comes in at 0.7627 the February low protecting space to 0.7597. Below this level, there is very little support apart from the 0.7335, 50% retracement of the move up from 2001, as noted by Karen Jones, chief analyst at FXStreet.