2 Jul 2015
AD/USD: watch 0.76 here - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the Australian dollar extended its decline after reaching a daily high of 0.7738 against the greenback, weighed by a weaker-than-expected Chinese manufacturing PMI, down to 50.2 in June.
Key Quotes:
"Also, RBA governor Stevens said in a central banking conference in London that further AUD depreciation is "both likely and necessary" weighting on the currency."
"The 1 hour chart shows that the 20 SMA turned sharply lower above the current price whilst the RSI indicator continues heading lower around 29, and the Momentum indicator holds in oversold territory, supporting additional declines."
"In the 4 hours chart, the latest candle extended below a bearish 20 SMA that caps the upside now around 0.7670, whilst the technical indicators have crossed their mid-lines towards the downside and maintain their bearish slopes, supporting the shorter term view, pointing for a break below the 0.7600 figure and to an approach to the lows in the 0.7530 later on in the day."
Key Quotes:
"Also, RBA governor Stevens said in a central banking conference in London that further AUD depreciation is "both likely and necessary" weighting on the currency."
"The 1 hour chart shows that the 20 SMA turned sharply lower above the current price whilst the RSI indicator continues heading lower around 29, and the Momentum indicator holds in oversold territory, supporting additional declines."
"In the 4 hours chart, the latest candle extended below a bearish 20 SMA that caps the upside now around 0.7670, whilst the technical indicators have crossed their mid-lines towards the downside and maintain their bearish slopes, supporting the shorter term view, pointing for a break below the 0.7600 figure and to an approach to the lows in the 0.7530 later on in the day."