AUD/USD Analysis: January's flash-crash low exposed

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6872

Trade tensions likely to keep the Aussie under pressure.
Break below 0.6820 should imply a mid-term bearish continuation.

The Australian dollar fell Friday against the greenback to its lowest since January´s flash-crash, touching 0.6860 to settle a handful of pips above this last. Dollar's strength against its commodity-linked rival was exacerbated by dismal Chinese data released at the beginning of the day, as Industrial Production in the country rose in May by less-than-anticipated, up by 5.0% YoY. Retail Sales in the same period were up by 8.6%, better than the market's forecast of 8.1%, but fell short of supporting the Aussie. The poor performance of worldwide equities added pressure on the commodity-linked currency, alongside persistent trade tensions. There are no macroeconomic releases scheduled in Australia or China this Monday.

The AUD/USD pair is technically bearish according to the daily chart, as it accelerated its decline after breaking below the 20 DMA Thursday hile technical indicators entered negative territory, retaining their firm downward slopes and at their lowest for this June, supporting further declines ahead. In the shorter term, and according to the 4 hours chart, technical indicators settled at extreme oversold territory having barely bounced, while the 20 SMA offers a strong bearish slope well above the current level and above the larger ones, keeping the risk skewed to the downside. A break below 0.6820 a long-term static support level, should imply a mid-term bearish continuation.

Support levels: 0.6860 0.6820 0.6775

Resistance levels: 0.6900 0.6940 0.6980

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.