Commodity currencies (AUD, NZD, CAD) underwent a short-squeeze following the Federal Reserve's decision to leave rates from zero-to-25 bps, which is theoretically more supportive for commodity speculation. However, after market participants digested the ultra-dovish FOMC, commodity currencies got monkey-hammered lower.
AUDUSD was pushed higher to .7276 on Friday, following the pin bar created on Thursday's volatile price action. Essentially creating a triple-top. This level has acted a strong resistance. After being rejected, price action is at a support crossroads.
The pair close on price action support of .7180 and could look to challenge a minor uptrend support trend line, dating back to September 10.
A close below this level will open up a longer, intraday descending trend line, and further support could be tested at ,7137 and .7096.
Momentum is likely fading. The RSI sharply contracted, while the ADX looks to be rolling over. Further price action weakness could, eventually, lead into a +/- DMI bearish convergence.
However, if support holds, the pair may retest .7180 as it grinds along the uptrend. A break above .7180 could cause the pair to explode and test .7233 and .7273.
Even though the US dollar pulled back last week, there is still the perception that the Fed will hike this year. This will keep the dollar somewhat supported, while global growth concerns - including China, Australia and NZ - will weigh on AUDUSD.
I would encourage everyone to check out www.teachingcurrencytrading.com/ - thank you!
Please follow me on Twitter @Lemieux_26
Check my posts out at:
bullion.directory/ab...christopher-lemieux/
www.investing.com/members/200193197
www.teachingcurrencytrading.com
oilpro.com/chrislemieux
AUDUSD was pushed higher to .7276 on Friday, following the pin bar created on Thursday's volatile price action. Essentially creating a triple-top. This level has acted a strong resistance. After being rejected, price action is at a support crossroads.
The pair close on price action support of .7180 and could look to challenge a minor uptrend support trend line, dating back to September 10.
A close below this level will open up a longer, intraday descending trend line, and further support could be tested at ,7137 and .7096.
Momentum is likely fading. The RSI sharply contracted, while the ADX looks to be rolling over. Further price action weakness could, eventually, lead into a +/- DMI bearish convergence.
However, if support holds, the pair may retest .7180 as it grinds along the uptrend. A break above .7180 could cause the pair to explode and test .7233 and .7273.
Even though the US dollar pulled back last week, there is still the perception that the Fed will hike this year. This will keep the dollar somewhat supported, while global growth concerns - including China, Australia and NZ - will weigh on AUDUSD.
I would encourage everyone to check out www.teachingcurrencytrading.com/ - thank you!
Please follow me on Twitter @Lemieux_26
Check my posts out at:
bullion.directory/ab...christopher-lemieux/
www.investing.com/members/200193197
www.teachingcurrencytrading.com
oilpro.com/chrislemieux