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3 Apr 2015
AUD/USD: Techs support dominant bear trend
FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, price action in the Aussie continues to support the dominant bearish trend.
Key Quotes
"The AUD/USD sunk to 0.7532, level not seen since May 2009, as Aussie remains weighed by plunging prices for iron ore that affect profits in the mining sector and therefore government tax revenues, forcing RBA's hand towards a rate cut."
"The Central Bank will have its meeting next April 7th, which means the risk will remain towards the downside until then."
"In the meantime, the 1 hour chart shows that, despite dollar´s broad weakness, the price is struggling to establish itself above a bearish 20 SMA, whilst the Momentum indicator turned lower after testing the 100 level and the RSI hovers around 50."
"In the 4 hours chart the 20 SMA maintains a strong bearish slope and offers dynamic resistance around 0.7610, while the technical indicators head lower below their mid-lines after correcting overbought readings, supporting the dominant bearish trend."
Key Quotes
"The AUD/USD sunk to 0.7532, level not seen since May 2009, as Aussie remains weighed by plunging prices for iron ore that affect profits in the mining sector and therefore government tax revenues, forcing RBA's hand towards a rate cut."
"The Central Bank will have its meeting next April 7th, which means the risk will remain towards the downside until then."
"In the meantime, the 1 hour chart shows that, despite dollar´s broad weakness, the price is struggling to establish itself above a bearish 20 SMA, whilst the Momentum indicator turned lower after testing the 100 level and the RSI hovers around 50."
"In the 4 hours chart the 20 SMA maintains a strong bearish slope and offers dynamic resistance around 0.7610, while the technical indicators head lower below their mid-lines after correcting overbought readings, supporting the dominant bearish trend."