6 Apr 2015
AUD/USD: Recovery may extend, spikes higher to see selling interest
FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, selling interest in the AUD/USD is likely to be encountered on spikes higher, with traders' main attention now shifted to the RBA policy decision tomorrow.
Key Quotes
The AUD/USD pair flirted with the 0.7700 level last Friday, although the upside remained contained, as the market still expects the RBA to cut its main rate, currently at 2.25%.
During March, the price of iron ore fell over 17%, affecting exports in Australia to the point of a loss equal to the 0.5% of the GDP of the country, the main reason the AUD/USD's upside has remained limited.
Technically, the 4 hours chart shows that the price advanced above its 20 SMA, whilst the technical indicators aim higher above their mid-lines, although the price stalled at the 38.2% retracement of its latest bearish run, measured from 0.7937 to 0.7532, now the immediate resistance.
If the price manages to extend beyond this level, the recovery may continue up to 0.7780, the 61.8% retracement of the same rally, although selling interest will likely surge on spikes higher, keeping the pair under pressure.
Key Quotes
The AUD/USD pair flirted with the 0.7700 level last Friday, although the upside remained contained, as the market still expects the RBA to cut its main rate, currently at 2.25%.
During March, the price of iron ore fell over 17%, affecting exports in Australia to the point of a loss equal to the 0.5% of the GDP of the country, the main reason the AUD/USD's upside has remained limited.
Technically, the 4 hours chart shows that the price advanced above its 20 SMA, whilst the technical indicators aim higher above their mid-lines, although the price stalled at the 38.2% retracement of its latest bearish run, measured from 0.7937 to 0.7532, now the immediate resistance.
If the price manages to extend beyond this level, the recovery may continue up to 0.7780, the 61.8% retracement of the same rally, although selling interest will likely surge on spikes higher, keeping the pair under pressure.