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Thomson Reuters
Jan 28 - 02:36 PM
AUD/USD - COMMENT-Fed, China Risks Halt AUD/USD Bulls Momentarily
First appeared on eFXplus on Jan 28 - 12:25 PM

AUD/USD bulls have found the daily cloud top to be formidable resistance but persistence is likely lead to a break once the Fed meeting and U.S.-China trade talks pass.
The slides in equity and commodity prices have combined with buying of Japanese yen to help erase earlier gains and turn AUD/USD lower on the day.
Risk-sensitive assets are trading with a cautious tone ahead of key risks this week.
The Fed decision and China-U.S.
trade talk loom large for AUD/USD.
The Fed is expected to maintain its patient stance, but traders will look for signs of adjustments to balance sheet reduction that could potentially soften the greenback.
China-U.S.
trade talks are set for Wednesday and Thursday.
Should negotiations not break down or result in progress risk sentiment should be upbeat.
Technicals suggest the AUD/USD pause is temporary.
Monthly RSI is biased up to provide bulls a tail wind and a bull hammer candle is in place. If the Fed and trade talks buoy risk, AUD/USD is likely to break the cloud top and test 0.7230/50 resistance and the 200-DMA.
December's 0.7394 high is then in play.

chart: Click here

Source:
Thomson Reuters IFR Markets

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