Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

AUD/USD Spikes After Soft U.S. CPI Print

Published 08/11/2022, 04:34 AM
Updated 02/07/2024, 09:30 AM
AUD/USD

AUDUSD had been battling with its 50-day simple moving average (SMA) after it rebounded from the 26-month low of 0.6680. However, in the previous session the pair experienced a huge jump, closing decisively above its 50-day SMA and coming to a halt at the upper Bollinger band.

The short-term oscillators are reflecting the intensifying positive momentum. Specifically, the MACD histogram has jumped above zero and its red signal line, while the RSI is flatlining above its 50-neutral threshold.

Should buying pressures persist, the recent peak of 0.7110 could be the initial resistance barrier. Piercing through this region, the bulls could target the 200-day SMA, currently at 0.7150. Violating this zone, the spotlight might turn to the June high of 0.7282 before 0.7458 appears on the radar.

On the flipside, if the pair reverses downwards, the 0.6946 hurdle may act as the first line of defence. Should that floor collapse, the recent low of 0.6868 might come under examination. Failing to halt there, the price could descend towards the May low of 0.6828 or lower to challenge the 0.6760 region.

Overall, AUDUSD is showing an appetite for some recovery. Therefore, a break above 0.7282 is needed to alter its medium-term outlook to bullish.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.