By Fast Brokers – The Aussie’s upward momentum is gaining traction as the currency pair separates itself from a downtrend line running through 5/19 highs. Hence, if broad based uncertainty abates the Aussie could be positioned to exert some relative strength over the near-term. Speaking of which, all eyes are still on the EU as Geithner visits Germany to urge solidarity and Spain’s parliament votes on proposed austerity measures. Therefore, investors should keep a sharp eye on the news wire over the next 24 hours. The U.S. will also print prelim GDP and weekly unemployment claims today, meaning economic fundamentals will regain some influence. Speaking of data, Austalia’s CapEx figure came in below analyst expectations, signaling Australia’s economy could in fact be cooling down, giving the RBA less incentive to hike next month. The data wire will be relatively tame across the globe tomorrow, leaving psychological forces in the driver’s seat as the trading week comes to a close.
Technically speaking, the Aussie faces technical barriers in the form of multiple downtrend lines along with intraday and 5/19 highs. As for the downside, the Aussie has technical cushions in the form of 5/26 and 5/25 lows. Additionally, the psychological .80 area could serve as a solid technical cushion should it be tested.
Price: .8365
Resistances: .8369, .8391, .8409, .8426, .8452, .8470
Supports: .8341, .8323, .8299, .8268, .8246, .8224
Psychological: .85, May lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
