AUD/USD: minor recovery lacking convition in thin mkt

FXStreet (Guatemala) – AUD/USD has been chasing its tail along the downside in the broader theme of things, it has managed to stage a run at 0.7200 in a recovery of the lows yesterday at 0.7096, but failed at the 100 SMA on the hourly at 0.7190 today.

The moves in these markets can be exaggerated in thin liquidity as end of year flows dominate, but in the directional sense, the Aussie is on target for a test of 0.7000 if recoveries continue to lack conviction in a weak commodities environment that is not going to improve overnight with so much supply on the market and miners who are just not cutting back.

AUD/USD levels

Technically, AUD/USD rallies are expected to remain capped by 0.7285 for losses into the low 0.7000 region, explained Karen jones, chief analyst at Commerzbank, and added, “Below the market lies the 0.7017 November low and the September low at .6940. Nearby support is the recent low at 0.7184.”

AUD/USD has been chasing its tail along the downside in the broader theme of things, it has managed to stage a run at 0.7200 in a recovery of the lows yesterday at 0.7096, but failed at the 100 SMA on the hourly at 0.7190 today.

(Market News Provided by FXstreet)