By Fast Brokers – The AUD/USD is stabilizing above its psychological .85 level and our uptrend lines as the risk trade stabilizes across the marketplace. A weekend of rest coupled Trichet’s reassurances the ECB and EU have Greece’s debt issue under control has allowed the Dollar to ease off of last week’s highs following its incredible rally. However, downward forces remain considering the extent of last week’s pullback and the risk trade will likely need several fundamental and psychological developments to break free of its downturn. The data wire will be relatively quiet over the next couple trading sessions, giving the risk trade an opportunity to consolidate as investors assess the damage. However, investors should keep a sharp eye on the news wire concerning developments in the EU since debt scares in Greece and Portugal were the driving force behind last week’s surge in the Dollar. Australia will bring economic fundamentals back into focus on Wednesday with the release of Home Loans data. This data release could have a noticeable impact on the Aussie should the results stray from estimates. The RBA’s decision to halt its rate hikes and a setback in Australia’s Retail Sales has created a bit of uncertainty. Therefore, investors will be honing in on Wednesday’s release to get a better idea of how Australia’s economy is faring. Furthermore, China will be releasing New Loans and Trade Balance data. Hence, volatility could pick up towards the middle of the week.
Technically speaking, the AUD/USD has multiple downtrend lines serving as technical barriers along with the psychological .87 area. As for the downside, the AUD/USD has multiple uptrend lines serving as technical cushions along with 2/5 and 2/4 lows. Furthermore, the psychological .85 area could serve as a technical cushion should it be tested.
Price: .8681
Resistances: .8692, .8711, .8729, .8749, .8763, .8780
Supports: .8662, .8647, .8627, .8607, .8587, .8562
Psychological: .85, .87, February highs and lows.
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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