AUD/USD Moves Lower After Moving Higher Overnight

The AUDUSD is coming off the highs for the day.  Commodities are up a little with the CRB index up 1.12 to 247.19 level  Copper has rebounded (up 5.55 to 219.95)after the sharp declines yesterday.  Aluminum and Nickel are down, however.  Crude oil is down a little as is the US stock market.

From a technical standpoint the pair moved to the lowest level since May 28th overnight reaching a low of  0.7788.  The market rebounded as the selling in the dollar became the direction of choice.  In NY the high reached 0.7920 but has since retreated as the dollar has improved.

The 0.7854 level is the midpoint of the days range.  This should provide some support.  Below that level, the 0.7826 level will be watched. This level was the low on June 6th

The market still remains supported on the downside as market sentiment remains that if there is a global rebound, the AUDUSD will benefit. The downside to that argument is “has the market priced it in?” and “will the rebound materialize or is the current pickup simply a restocking of inventories?”.

On the upside, the 100 hour MA and 200 hour MA are moving sideways indicating a consolidating market. The 100 hour MA comes in at 0.7956. (blue line in the chart above) and 0.7997 (green line in 1 hour chart above).

Subscribe by RSS Subscribe by Email