AUD/USD Declines Towards Daily Support
- AUD/USD Declines Towards Daily Support
- The 200 MVA is Now Acting as Support at .7546
- Sentiment Figures Remain Neutral; IG Client Sentiment Totaling -1.03
The AUD/USD is trading back towards values of key daily support this morning, as the pair continues to decline after the release of the RBA’s (Reserve bank of Australia) April meeting minutes. This decline should be seen as technically significant, as the pair is again testing its 200 day MVA (simple moving average) at .7546. A close below .7546 would suggest a bearish turn in the pair’s long term trend, potentially opening a move back towards yearly lows at .7473.
In the event of a bullish bounce from the 200 day MVA, traders should next look for the AUD/USD to potentially breakout above the 10 day EMA .7559. A move beyond this value would suggest a bullish turn in momentum in the short term, opening up the pair to retest the standing weekly high at .7610 and the April monthly high at .7641.
AUD/USD, Daily Chart with Averages
Current sentiment totals for the AUD/USD remain mixed, with IG Client Sentiment currently reading at -1.03. This value has shifted from yesterday’s reading of +1.23, but has failed so far to reach extremes with 51% of traders short the currency pair. In the event that the AUD/USD breaks out below its 200 day MVA, traders may look for these sentiment totals to flip towards positive extremes of +2.0 or more. Alternatively, if the pair bounces at support and reverse towards weekly highs, traders may look for IG Client Sentiment to move towards a new negative extreme later in the week.
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--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.