AUD/USD: finding territory on the 0.75 handle while DXY drops below 101 handle

Ross J Burland FXStreet

Currently, AUD/USD is trading at 0.7504, up 0.78% on the day, having posted a daily high at 0.7520 and low at 0.7430.

AUD/USD has made fresh territory on the 0.75 handle in a continuation of the sell-off in the greenback while the DXY breaks below the 101 handle to daily lows. The US dollar is being unwound after last year's hysteria over Trump and the Fed.

FOMC’s Lockhart sees two hikes in 2017

Analysts at Brown Brothers Harriman suggested that the main consideration appears to be the further unwinding of positions as no more details of the new administration's policies were provided. "The Dollar Index fell it its lowest level since December 14, the day the Fed hiked rates. The US 10-year bond yield reached almost 2.3% today. That is the lowest yield since November 30. The two-year yield has slipped to 1.14%, its lowest level in about a month."

AUD/USD levels

With spot trading at 0.7505, we can see next resistance ahead at 0.7520 (Daily High), 0.7545 (Daily Classic R2), 0.7579 (Weekly Classic R3), 0.7616 (Daily Classic R3) and 0.7813 (Annual High). Support below can be found at 0.7503 (Daily 100 SMA), 0.7501 (Daily 200 SMA), 0.7498 (Monthly High), 0.7495 (Daily Classic R1) and 0.7476 (Hourly 20 EMA).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.7363

67% Bullish
22% Bearish
11% Sideways

Bias Bullish

1 Month

Avg Forecast 0.7310

33% Bullish
50% Bearish
17% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.7275

47% Bullish
47% Bearish
6% Sideways

Bias Neutral

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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