AUD/USD challenging the 0.80 handle in Tokyo open
|- AUD/USD looking for space on 0.80 handle.
- The dollar remains on the backfoot.
AUD/USD finished the overnight session near 0.8000 after a bullish start to the session helped along by a stabilisation in copper before a fade back to 0.7980. Currently, AUD/USD is trading at 0.8003, up 0.07% on the day, having posted a daily high at 0.8007 and low at 0.7993.
AUD/USD has spiked into the Tokyo open and caught a bid off the 100hourly SMA at 0.7994 to aforementioned highs. However, there is little of a catalyst here and no further scheduled events in the Asian session to support further volatility.
Senate managing to get a sign off from Trump
Meanwhile, the news from overnight was positives in the Senate managing to get a sign off from Trump for a debt extension until Feb 8th but this lead to a rally in US Treasuries supporting the antipodeans.
AUD/USD levels
Valeria Bednarik, chief analyst at FXStreet explained that the short-term outlook is bearish, as in the 4 hours chart, the pair broke below a horizontal 20 SMA at the beginning of the day, with the later recovery stalling below it:
"Technical indicators in the mentioned chart have recovered within negative territory before losing upward strength, now poised to resume their declines. The pair has a strong support area around 0.7930/40, where it bottomed multiple times last week, with a break below it probably leading to a test of a major Fibonacci support at 0.7890, the 61.8% retracement of the September/December decline," Valeria added.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.