|

AUD/USD: Broad consolidation - Westpac

Tim Riddell, Research Analyst at Westpac, suggests that despite breaching retracement/support at 0.7480, an interim base appears to be forming off 0.7410-20 for AUD/USD pair, supported by a sound turn in daily momentum

Key Quotes

“The style/scale of rebounds is critical. A close above 0.7650 would temper current bias for limited corrective bounces prior to another leg lower (to 0.7325-50).”

Weekly

  • Weekly momentum has pulled back to levels which defined range support over the past two years. This raises the risk that a potential base may develop
  • Despite risk that range affirming may be in play, if near term rebounds falter, price “patterns” could quickly swing towards another/extending slide towards 0.7200.”

Monthly

Monthly momentum has a more neutral to cautious tone for AUD. Though it should be noted that RSI’s have not yet broken lower, the downside is favoured

A spike to retest the 0.7150-0.7200 area could develop without altering the longer term bias for a continued broad consolidation forming since early 2016.”

Author

Sandeep Kanihama

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.

More from Sandeep Kanihama
Share:

Editor's Picks

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.
 

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.