10 Aug 2015
AUD/USD: Gravity towards 20 SMA could ruin bulls hopes - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the AUD/USD pair closed above the 0.7400 for the first time in three weeks, as the Aussie got help from the RBA and local employment readings this past week.
Key Quotes:
"The Central Bank Governor, Glenn Stevens, unexpectedly changed his wording on the currency's strength, saying that the AUD depreciation has done enough to help economy, whilst the country economy created over the triple of new jobs than what the market was expecting. The pair however, may open the week with a soft tone, and even gap lower as Chinese exports declined more than expected in July, down 8.3%, whilst imports dropped 8.1%, leaving a trade surplus of $43 billion. "
"Technically, the 4 hours chart shows that the 200 EMA stands at 0.7440, providing a key dynamic resistance for the upcoming hours, as an extension beyond it, should lead to additional gains. In the same chart the technical indicators maintain their bullish tone above their mid-lines, whilst the 20 SMA stands at 0.7360, which means that only below this last level the pair can turn intraday bearish, and decline towards the 0.7330 region."
Key Quotes:
"The Central Bank Governor, Glenn Stevens, unexpectedly changed his wording on the currency's strength, saying that the AUD depreciation has done enough to help economy, whilst the country economy created over the triple of new jobs than what the market was expecting. The pair however, may open the week with a soft tone, and even gap lower as Chinese exports declined more than expected in July, down 8.3%, whilst imports dropped 8.1%, leaving a trade surplus of $43 billion. "
"Technically, the 4 hours chart shows that the 200 EMA stands at 0.7440, providing a key dynamic resistance for the upcoming hours, as an extension beyond it, should lead to additional gains. In the same chart the technical indicators maintain their bullish tone above their mid-lines, whilst the 20 SMA stands at 0.7360, which means that only below this last level the pair can turn intraday bearish, and decline towards the 0.7330 region."