The aussie is hanging on to key support levels

The aussie is hanging on to key support levels

The aussie had a torrid day in trading yesterday, but it’s not down for the count just yet

AUD/USD is off the lows for the day as the pair bounces off the 100-day MA (red line). It’s not exactly a win just yet for buyers and price is now trading between the 100-day MA and the 200-day MA (blue line) and that makes sentiment a little tricky for the moment.

Looking at near-term levels though, the bounce at the 100-day MA also coincides with a support level on the hourly chart. But yesterday’s move to the downside sees it break below the 100 and 200-hour MAs, and that means sentiment has turned bearish for the pair.

The next level to watch for a break is the 100-day MA level, and if that gives way it opens up another leg to the downside.

But the aussie is also finding support from the cross against the kiwi. AUD/NZD has been holding on to the 61.8 retracement level @ 1.0717 for the past trading week, and today is no different as well.

While not always the case, the cross could prove to be an important indicator of aussie sentiment for the time being as the currency tests key support levels both against the dollar and the kiwi.

 

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