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11 May 2015
AUD/USD: With scope for a 0.81 extension - FXStreet
FXStreet (Bali) - AUD/USD is trading some 20 odd pips above the 0.79 handle following the Chinese rate cut over the weekend, with Valeria Bednarik, Chief Analyst at FXStreet, noting that from a technical perspective, the pair has scope to extend towards the 0.8100 price zone.
Key Quotes
"The Aussie has been in a bullish trend however, ever since bottoming in the 0.7500 region last April, despite the RBA has finally cut its benchmark rate for the second time this year in its May meeting."
"The cut came with a less dovish-than-expected statement, and market belief is that the RBA will refrain from cutting further this year, adding to the bullish case for the currency."
"Chinese decision over the weekend, may trigger a big downward gap, albeit if the price holds above Friday's low of 0.7860, chances of additional declines should remain limited."
"Technically, the 4 hours chart shows that the price stands below its 20 SMA, whilst the Momentum indicator heads lower below 100 and the RSI indicator heads higher around 53, this last limiting the possibility of a stronger decline. Should the price firm up above the 0.7990 region, the pair has scope to extend towards the 0.8100 price zone, this month highs."
Key Quotes
"The Aussie has been in a bullish trend however, ever since bottoming in the 0.7500 region last April, despite the RBA has finally cut its benchmark rate for the second time this year in its May meeting."
"The cut came with a less dovish-than-expected statement, and market belief is that the RBA will refrain from cutting further this year, adding to the bullish case for the currency."
"Chinese decision over the weekend, may trigger a big downward gap, albeit if the price holds above Friday's low of 0.7860, chances of additional declines should remain limited."
"Technically, the 4 hours chart shows that the price stands below its 20 SMA, whilst the Momentum indicator heads lower below 100 and the RSI indicator heads higher around 53, this last limiting the possibility of a stronger decline. Should the price firm up above the 0.7990 region, the pair has scope to extend towards the 0.8100 price zone, this month highs."