By Fast Brokers – The Aussie is bouncing off Tuesday lows as Cable and EUR/USD trend higher. The risk as a whole continues to climb higher as major dollar pairs lock into their respective near-term uptrends. The Aussie is no different, hanging above .87 after going through a series of profit-taking. Australia has been silent on both the data and news wires this week, leaving the currency pair in the hands of psychological events in the West along with movements in the Yuan. That being said, the news wire will heat up again later today as the BoE releases its monetary policy meeting minutes followed by the Fed’s monthly monetary policy meeting. Although the risk trade is posting an impressive recovery from June lows, longer-term negative forces are still waiting in the wings and it remains to be seen whether we are in the midst of a short-lived bounce or a more lasting recovery. Meanwhile, focus will square on the U.S. since Australia will be quiet on the data wire for the remainder of the week. Hence, psychological forces will be at the steering wheel, meaning news wires should be monitored around the globe. The U.S. will print new home sales today, followed by weekly unemployment claims and durable goods orders tomorrow.
Technically speaking, the Aussie faces technical barriers in the form 6/21 and 6/22 highs. Additionally, the highly psychological .90 level should serve as a solid barrier should it be tested. As for the downside, the Aussie is accumulating uptrend lines along with intraday and 6/18 lows. Furthermore, the psychological .85 level should serve as a solid technical cushion should it be reached.
Price: .8721
Resistances: .8738, .8764, .8799, .8831, 8859, .8890, .8919
Supports: .8689, .8671, .8587, .8565, .8543, .8523, .8500
Psychological: .90, .85
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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