Daily Outlook

AUD/USD came under pressure yesterday as the Yuan continued to strengthen and the USD enjoyed solid gains across the board on continued speculation the FED was moving closer to a December/November rate hike.

AUD/NZD trend continues as overnight levels reached the two month high of 1.07 before closing at 1.0684. Yesterday RBNZ Governor added to the dovish attitude as a means of forward guidance for the expected rate hike in December. As the cycle continues day traders will be conscious of the 200 day moving average at 1.0718.

Hard Brexit fears pushed the pound -1.9% overnight but Asian bulls have created an early 1.4% bounce as reports that UK PM May has backed down from not allowing a vote on her controversial Brexit plans. The 10 day moving average provides a pivotal point at 1.2592 which a short squeeze can definitely target as we extremely oversold technically.

AUD/USD 10/12/2016 1:00 AM  Trend daily chart (=)  Trend weekly chart (=) AUD/USD Intraday: key resistance at 0.7580. Pivot: 0.7580 Our preference: short positions below 0.7580 with targets at 0.7530 & 0.7505 in extension. Alternative scenario: above 0.7580 look for further upside with 0.7600 & 0.7625 as targets. Comment: even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. Supports and resistances: 0.7625 ** 0.7600 * 0.7580 *** 0.7560 Last 0.7530 ** 0.7505 * 0.7485 **

Ticker : AUD  Add to my portfolio