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22 Jan 2015
AUD/USD testing below 0.81 handle ahead of key supports
FXStreet (Guatemala) - AUD/USD is currently trading at 0.8097 with a high of 0.8138 and a low of 0.8056, up 0.12% on the day.
AUD/USD has been driven south again below the 0.81 handle in recent moments testing support just below the figure currently. The Aussie has been driven higher overall with anticipation for liquidity to drive higher yielders along. The ECB announced today that it will be pumping more money into the European market and to a higher extent that the markets were anticipating, to a tune of EUR60B per month until September 2016, starting in March.
However, markets are nervous around the state of the EZ and for what ramifications may come out of this move, considering that it is pretty much a last resolve and there are opponents, such as the German institutions who are uncomfortable with this move. Gold has rallied and to the highest level since August last year to a high of $1,037.94. Meanwhile, Karen Jones, chief analyst at Commerzbank, explained that while capped by the downtrend, the short term risk is for a slide to the recent low at 0.8034. There is scope for the long term double Fibonacci support at 0.7950/30. We note the 13 count on the weekly chart and this suggests that 0.7950/30 is likely to hold the initial test.
AUD/USD has been driven south again below the 0.81 handle in recent moments testing support just below the figure currently. The Aussie has been driven higher overall with anticipation for liquidity to drive higher yielders along. The ECB announced today that it will be pumping more money into the European market and to a higher extent that the markets were anticipating, to a tune of EUR60B per month until September 2016, starting in March.
However, markets are nervous around the state of the EZ and for what ramifications may come out of this move, considering that it is pretty much a last resolve and there are opponents, such as the German institutions who are uncomfortable with this move. Gold has rallied and to the highest level since August last year to a high of $1,037.94. Meanwhile, Karen Jones, chief analyst at Commerzbank, explained that while capped by the downtrend, the short term risk is for a slide to the recent low at 0.8034. There is scope for the long term double Fibonacci support at 0.7950/30. We note the 13 count on the weekly chart and this suggests that 0.7950/30 is likely to hold the initial test.