AUD: Risk of spike higher before returning to range trading - Westpac

Sandeep Kanihama FXStreet Contributor

Momentum remains high, but has not rolled over as AUD tests multiple resistance at 0.7830-50, explains Tim Riddell, Research Analyst at Westpac.

Key Quotes

“AUD and daily momentum are now very stretched.”

“A larger squeeze (to 0.7910 or even 0.81+/-) is possible on a close above 0.7850, but equally, a slip below 0.7730 could signal a return to range trading.”

“Weekly

Weekly momentum is high but remains supportive as multiple resistance is being tested. Though now at extreme levels, momentum is still not faltering.
However, even if AUD breaks higher, it would still be seen as a broad corrective retracement and be followed by a return to range trading”

“Monthly

Monthly momentum has flipped from neutral to positive, notably in stochastics, as a long term down-channel, retracements and previous highs are being tested
This month’s close is critical. A close above the channel could open potential for a further (but corrective) squeeze. Below, would affirm range resistance”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.