23 Jul 2015
AUD/USD: an accelerated decline on its way? - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the Australian dollar erased all of its Tuesday gains against the greenback, despite Australian inflation figures for the second quarter of this 2015 came out in line with market's expectations.
Key Quotes:
"The year-on-year reading however, came out at 1.5% against expectations of 1.7%, and 1.3% previous. "
"Also, RBA Governor Stevens gave a speech on monetary policy at the Anika Foundation, remarking that, despite the economy is in the right path, the recovery is being slow and that further rate cuts are still on the table. The short term technical picture favors the downside, as the 1 hour chart shows that the price extended well below a now bearish 20 SMA, whilst the Momentum indicator continues to head south in negative territory."
"In the 4 hours chart, the price is now below a horizontal 20 SMA, whilst the technical indicators present a tepid bearish tone, with the Momentum indicator flat around its 100 level and the RSI indicator hovering around 44. With a daily low at 0.7360, the pair needs to extend below it to trip stops and accelerate its decline to fresh multi-year lows below the 0.7300 level."
Key Quotes:
"The year-on-year reading however, came out at 1.5% against expectations of 1.7%, and 1.3% previous. "
"Also, RBA Governor Stevens gave a speech on monetary policy at the Anika Foundation, remarking that, despite the economy is in the right path, the recovery is being slow and that further rate cuts are still on the table. The short term technical picture favors the downside, as the 1 hour chart shows that the price extended well below a now bearish 20 SMA, whilst the Momentum indicator continues to head south in negative territory."
"In the 4 hours chart, the price is now below a horizontal 20 SMA, whilst the technical indicators present a tepid bearish tone, with the Momentum indicator flat around its 100 level and the RSI indicator hovering around 44. With a daily low at 0.7360, the pair needs to extend below it to trip stops and accelerate its decline to fresh multi-year lows below the 0.7300 level."