UK leadership challenge triggered risk-off, thus, boosting the demand for the USD. However, the AUDUSD pair is headed back towards Thursday”s low at 0.7232 ahead of US industrial figures.
November 16, GKFX – The USD bulls staged a solid comeback amid a renewed risk-aversion wave that the gripped the European markets amid fresh UK political concerns, lifting the safe-haven US dollar at the expense of the higher-yielding Aussie.
AUDUSD: Bears taking back charge
The latest reports of the leadership challenge underway against the UK PM Theresa May added to ongoing concerns over a potential disorderly Brexit and spooked markets, with the European equities quickly paring back early gains, as the risk assets take a hit.
As a result, the Aussie is seen heading back for a test of yesterday’s low reached at 0.7232 levels while the US dollar index bounces back to 96.95, having posted daily lows at 96.77. Despite the latest leg down, the OZ currency remains supported by solid Australian employment data, with markets now expecting an RBA rate hike by mid-2019.
Attention now turns towards the sentiment on the Wall Street and the US industrial production release for fresh trading impetus on the Aussie dollar.
AUDUSD Technical Outlook
AUDUSD
Overview:
Last Price: 0.7258
Daily change: -21 pips
Daily change: -0.289%
Daily Open: 0.7279
Trends:
Daily SMA20: 0.7163
Daily SMA50: 0.7163
Daily SMA100: 0.7257
Daily SMA200: 0.7456
Levels:
Daily High: 0.73
Daily Low: 0.7226
Weekly High: 0.7304
Weekly Low: 0.7183
Monthly High: 0.724
Monthly Low: 0.702
Daily Fibonacci 38.2%: 0.7272
Daily Fibonacci 61.8%: 0.7255
Daily Pivot Point S1: 0.7237
Daily Pivot Point S2: 0.7195
Daily Pivot Point S3: 0.7164
Daily Pivot Point R1: 0.7311
Daily Pivot Point R2: 0.7342
Daily Pivot Point R3: 0.7384
Disclaimer
This article was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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