AUD: Technical indicators favor the peeling back more of the recent gains - BBH

Sandeep Kanihama FXStreet Contributor

Analysts at BBH explain that the only major currency weaker than the Canadian dollar last week (-0.2%) was the Australian dollar (-1%) and the technical indicators favor the peeling back more of the Aussie's recent gains.

Key Quotes

“The similar correlation between the Australian dollar and the two-year rate differential is at 0.48, and over the past decade, it rarely is above 0.5. The Aussie's pullback last week held $0.7600, which is an important congestion area and the 61.8% of the gains it has scored since briefly dipping below $0.7500 on March 9. The technical indicators favor the peeling back more of the Aussie's recent gains. The price action reaffirms and strengthens the resistance around $0.7700 and sets up an important test on $0.7500, with modest support seen first near $0.7550.”

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.

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