Value bias continues to favour sellers moderately than consumers
Failure to get above the 200-hour MA (blue line) continues to spotlight that near-term bias within the pair continues to be extra bearish and regardless of the greenback struggling a bit of at the moment, technical indicators do not lie.
I am not shopping for into the euro and pound’s restoration seen at the moment – extra of the latter as Brexit headlines do not recommend deal is coming simply but – and in that view, the greenback ought to outperform on the premise of flows alone.
Over a two-day foundation to start out the week, AUD/USD stays on the decrease aspect and that for me is a extra correct image of issues as what we’re seeing to this point is merely a retracement of yesterday’s value motion; in some methods, merchants are ready for assurance from the US session (on vacation yesterday) to substantiate the strikes we noticed yesterday.
For me, so long as EUR/USD holds under 1.1300, there’s good purpose for the dollar to stay bid. And extra so when the pound can also be scuffling with Brexit worries. And within the case of AUD/USD, with the technical bias being extra bearish it highlights draw back transfer continues to be extra seemingly on this case.
If value does monitor above the 200-hour MA and 100-hour MA (pink line), then near-term bias turns extra bullish after which we are able to rethink. However that is a small danger given the degrees we’re buying and selling at proper now.
For taking a extra bullish stance on the AUD/USD once more like at first of the month, I reckon a break of the September excessive @ zero.7315 must be noticed for that to occur. In any other case, we’re now at ranges the place promoting close to key technical resistance (as per above) is extra enticing.