AUD/USD Turns Negative, Eyeing 0.7200 Mark to Extend Support
AUD/USD Turns Negative, Eyeing 0.7200 Mark to Extend Support
The AUD/USD
pair failed to extend its tepid recovery back towards 200-day SMA and
the bears took back the control, dragging the pair back into negative
territory.
Currently the pair is trading with a modest cut at session through level
of 0.7232. Looming concerns of the June Fed rate-hike has been exerting
pressure on commodities and commodity-linked currencies like the
Australian Dollar.
However, thin liquidity conditions ahead of a weekend and risk-on
sentiment surrounding global equities might restrict any sharp
down-slide. Moreover, with only the release of existing home sales data
from the US, trader would be reluctant initiate fresh positions or carry
on their positions over the weekend. The data, however, might trigger
some intra-day tradable moves.
Technical outlook
Slobodan Drvenica, Information & Analysis Manager Windsor Brokers
Ltd. expects, "persisting downside pressure while 200SMA caps. Only
sustained break above 200SMA would signal stronger upside action and
expose further strong barriers at 0.7287 (daily Tenkan-sen) and 0.7353
(daily Ichimoku cloud base), break of which will confirm correction."
