FXStreet (Bali) – Valeria Bednarik, Chief Analyst at FXStreet, writes on her Asian report, that additional declines in AUD/USD below 0.7460 should lead to the next target of 0.7380 being attached in upcoming sessions.
Key Quotes
“AUD/USD pair fell to a fresh 7-year low of 0.7504 last Friday, with the Aussie being dumped on the back of weak local data. The trade balance data for May showed that deficit widened beyond expected, to 2,751M, whilst Retail Sales in the same month resulted at 0.3% against expectations of 0.5%. Additionally, Chinese PMIs missing expectations and approaching contraction levels, spooked investors away from antipodean currencies.”
“The pair is starting the week at levels not seen since May 2009, trading in the 0.7470/80 region and with the 4 hours chart showing that the 20 SMA has turned sharply lower well above the current price, whilst the technical indicators have resumed their declines in extreme oversold levels, after limited upward corrections.”
“The former year low in the 0.7520 is the immediate resistance level to follow, as it would take a recovery above it to see the bearish pressure easing intraday, whilst additional declines below 0.7460 should lead to a decline down to the 0.7380 region during the upcoming sessions.”
(Market News Provided by FXstreet)