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Aussie heading south back towards 0.9600

FXstreet.com (Barcelona) - The Aussie has continued to previous losses, edging down another 22 pips to close the day at 0.9635 which is just above the lows set last week at 0.9593.

According to Val Bednairk of FXStreet.com, "the AUD/USD tests its daily lows after a brief attempt of recovery was halted around 0.9660. Despite the slow motion in markets today, the bearish trend of the pair continues developing, with little scope to advance, as US futures trade in red. The hourly chart shows a pretty neutral stance, while in the 4 hours chart technical readings still hold to the negative bias."

The FXStreet.com Trend Index remains in Slightly Bearish set up on the daily chart, while the OB/OS index reads Oversold. The RSI (14) is now showing multiple “bullish divergences” as price continues to make new lows but momentum does not. This development could help provide a short term bounce, but should not be looked at as an overall trend change. Initial resistance sits at 0.9655 (the 50dma on 1 hour chart), followed by 0.9730 (previous support, now resistance). First support sits at 0.9615 (previous day low), followed by 0.9593 (previous week low).

Will USD/JPY buyers continue to defend the 100.70 (the 20dma) area ?

The Dollar/Yen has traded in a narrow range throughout the day, currently down 50 pips and consolidating around the 101.00 area as the release of the most recent BoJ monetary policy minutes during the previous Asia session didn’t seem to have a major influence on the pair.
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Flash: We still think dips to 1.0300 area in USD/CAD are a buy - TD Securities

According to Shaun Osborn, Chief FX Strategist at TD Securities, “quiet trading reflects holiday markets (UK and US closed). USD/CAD is trading in a tight range so far today around the base of the bull channel that has guided that market up form the early May lows. Bull trend momentum has clearly waned a little on the short-term oscillators but the broader bias remains USD-constructive as far as we are concerned."
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