AUDUSD Drops Back to Test 0.7250

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



    Last Price: 0.7258

    Daily change: -21 pips

    Daily change: -0.289%

    Daily Open: 0.7279


    Daily SMA20: 0.7163

    Daily SMA50: 0.7163

    Daily SMA100: 0.7257

    Daily SMA200: 0.7456


    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


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.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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