AUD/USD extends rejection move from 0.7500 important barrier

Haresh Menghani FXStreet

The AUD/USD pair once again failed to build on to its momentum above 0.7500 psychological mark and was rejected at 200-day SMA barrier.

Currently trading around 0.7460 region, testing session lows, the pair ran through fresh offers at higher level as investors seemed to unwind their bearish USD bets ahead of President-elect Donald Trump’s inauguration speech scheduled Jan. 20. In fact, the key US Dollar Index was seen flirting with highs near 101.70 level.

The pair even shrugged-off upbeat Australian MI inflation gauge and failed to clear the very important 200-day SMA barrier and extended its retracement from the vicinity of last week's 4-week high.

With the US markets closed in observance of Martin Luther King Day, the pair's movement on Monday will remain dependent on the overall US Dollar price dynamics and broader market risk sentiment. However, this week's key economic releases / events – including US inflation print and Australian employment details, would help investors determine the pair's next leg of directional move.

Technical levels to watch

Immediate support on the downside is pegged near 0.7450 region, which if broken has the potential to drag the pair back towards 50-day SMA support near 0.7410-0.7400 region ahead of 0.7380 strong horizontal support.

On the flip side, 0.7500 mark (200-day SMA region) remains immediate strong barrier, which if cleared decisively has the potential to lift the pair beyond Dec. highs resistance near 0.7520-25 region, towards testing its next major hurdle near 0.7560-65 region.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.7464

27% Bullish
64% Bearish
9% Sideways

Bias Bearish

1 Month

Avg Forecast 0.7383

27% Bullish
60% Bearish
13% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.7289

25% Bullish
55% Bearish
20% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.