Janet Yellen helped spur a USD reversal yesterday with large gains seen across most pairs with the biggest seen in USD/JPY which closed up nearly 200 pips from Asian lows at Y114.60.
AUD/USD is back at the key 0.7500 level which is also the 200 DMA but traders will be waiting for today’s Unemployment data before making decisions on whether the USD correction is finished.
Yellen talked up the need for further rate hikes and although she once again used the term gradual she played on the fear that if the FED raised too slowly they would likely be forced to raise faster in the end and this would cause a recession.
USD bulls took this as a green light to rebuild long positions with US CPI also supporting as it came in over 2% y/y for the first time in 2 years. Some caution has to be taken however as we have a pivotal speech tomorrow from the new US president Trump whose every word will be parsed for clues about his agenda and especially his goals in the first 100 days.
Finally the USD index tested and bounced off the key 100 level and this is also another reason to get back on the dollar band wagon if trump does not rock the boat too much or disappoint the investors tomorrow.
| AUD/USD |
1/18/2017 9:06 PM |
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Trend daily chart  (=) |
Trend weekly chart  (=) |
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AUD/USD Intraday: turning down. |
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Pivot: 0.7525
Our preference: short positions below 0.7525 with targets at 0.7500 & 0.7485 in extension.
Alternative scenario: above 0.7525 look for further upside with 0.7540 & 0.7555 as targets.
Comment: the RSI is capped by a declining trend line.
Supports and resistances:
0.7555 *
0.7540 *
0.7525 **
0.7510 Last
0.7500 ***
0.7485 *
0.7465 ** |
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