AUD/USD: daily update
AUD/USD was capped below $0.9700 yesterday and today Aussie is once again testing support at $0.9580. The pair remains inside a downward channel close to the minimal level since 2011 at $0.9528.
There’s a RSI divergence on the daily chart. On the weekly chart RSI is in the oversold area. Commerzbank expects Aussie to consolidate a bit. The bank will remain short in the medium term as long as the pair is below $0.9845. Only above this level we’ll see a deeper retracement to $0.9970. Intraday resistance remains at $0.9700. A dip below the recent low at $0.9528 will bring Australian dollar down to $0.9404/9388 in the medium term.
Rochford Capital: “I don’t think the Fed is going to taper any time soon. The US dollar strength is not entirely justified. The Aussie is still struggling to get to $0.9700, but if it does break above it, there will be stop-losses which could see it spike up to $0.9780.”
Chart. H4 AUD/USD