AUD/USD: higher or lower? We are at very key levels now


FXStreet (Guatemala) - AUD/USD is currently trading at 0.7228 with a high of 0.7235 and a low of 0.7149.

AUD/USD's NY cut was compelling given the sheer size of option strikes at 0.72 the figure. 6 yards were at that strike and the price was driven higher and through the level as suggested by us yesterday as a possibility. But now where?

Fundamentally, AUD/USD has been bought into on positive vibes from the RBA who are not about to cut rates in a hurry and leave the bar high, allowing for economics to run their course expecting that the nation's jobs sector, exchange rate and services to support the economy against the overseas headwinds from China.

More on that was written here yesterday, offering some caution to such a strategy and allowing the possibility for a tactical cut in time to come from the RBA. However at the same time, the greenback is being setback on US job's market and the Fed that is likely to hold off from hiking interest rates.

AUD/USD bullish/neutral ( RSI offers upside potential, 50 DMA left for dust)

The price remains below the descending resistance line on the daily chart, but significantly breached the highs of 5th cot at 0.7130 and then the 50 DMA at 0.7168 with the 20 DMA tracking the upside trend of late, turning bullish. On the hourly chart, RSI (14) has room to go still as well targeting base of the cloud at 0.7230 and R2 at 0.7246. Karen Jones, chief analyst at Commerzbank explained, "A move above the September high at 0.7279 is needed to negate downside pressure and re-target the 0.7448 July 21 high."

For a less bullish analyses for the immediate future, see here.

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