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25 May 2015
AUD/USD: V-shape bull swing, bears in control
FXStreet (Bali) - The Australian Dollar saw a brief drive through last Friday's low at 0.7810, reaching its lowest at 0.7808, before a vigorous rebound towards 0.7825/30, point where it has settled now.
The early sell-off came fueled by a stop-loss cascade in EUR/USD, which triggered sporadic broad-based USD selling across the board, with liquidity almost non-existent owning to European/US public holidays, Tokyo closed.
Valeria Bednarik, Chief Analyst at FXStreet, notes: "The technical picture shows that the price broke clearly below its 200 SMA for the first time since late April, and extended below it, whilst the 20 SMA presents a strong bearish slope and both moving average converge around 0.7890, providing a strong dynamic resistance. In the same time frame, however, the RSI is posting a tepid bounce from oversold levels, whilst the Momentum indicator also aims higher."
The early sell-off came fueled by a stop-loss cascade in EUR/USD, which triggered sporadic broad-based USD selling across the board, with liquidity almost non-existent owning to European/US public holidays, Tokyo closed.
Valeria Bednarik, Chief Analyst at FXStreet, notes: "The technical picture shows that the price broke clearly below its 200 SMA for the first time since late April, and extended below it, whilst the 20 SMA presents a strong bearish slope and both moving average converge around 0.7890, providing a strong dynamic resistance. In the same time frame, however, the RSI is posting a tepid bounce from oversold levels, whilst the Momentum indicator also aims higher."