This week the US inflation data came out arguably on the more softer side than feared. Both the Core CPI and Core PPI missed expectations but the US dollar found bids nonetheless. I'm not sure what's the driver here because interest rates expectations haven't changed much and the data wasn't bad at all.
My guess it's that it has more to do with positioning rather than fundamentals. The “short US dollar” trade has recently become the most crowded one and in such instances, it doesn’t take much to see strong unwinding. Maybe, the market is expecting even higher inflation figures ahead. We'll see how that evolves.
On the daily chart, we can see that the price rejected once again the top trendline that's been defining the broadening wedge and extended the move to the downside. The target for the sellers should be the key support zone around the 0.6350 level. If the price gets there, we can expect the buyers to step in with a defined risk below the support to position for a rally into the 0.69 handle next, while the sellers will look for a break lower to extend the drop into the 0.60 handle.
On the 1 hour chart, we can see that we have a minor resistance now around the 0.6485 level. If we get a retest, we can expect the sellers to step in with a defined risk above the resistance to position for further downside, while the buyers will look for a break higher to pile in for a rally into the top trendline again.
This article was written by Giuseppe Dellamotta at www.forexlive.com.Hence then, the article about audusd continues its descent towards a key support zone was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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