AUD/USD: consolidates strong risk-rally recovery to 50 1hr sma
AUD/USD is currently well placed through 0.7560 after a strong recovery rally from 0.7493 lows to meet the 50 sma on the 1hr sticks at 0.7567 Global market sentiment retraced last week's closing performance in the US of which Westpacs Imre Speizer put as a “mini-taper tantrum”. The Fed’s Brainard was more dovish than expected and enabled the Aussie to rally along with stocks and risk on asset classes across the board. For the day ahead, we have Australia’s NAB business survey and Chinese industrial production; fixed asset investment; and retail sales are all due. "Fixed asset investment is the focus, with private sector activity very weak in 2016," explained Imre Speizer.
AUD/USD levels
Despite the recovery, "While trading below the 0.7755 August peak the 200 day ma and the 2016 support line at 0.7408/.7395 will remain in focus," explained analysts at Commerzbank. With spot trading at 0.7563, we can see next resistance ahead at 0.7566 (Daily Open), 0.7568 (Daily High), 0.7569 (Yesterday's High), 0.7578 (Daily Classic PP) and 0.7597 (Hourly 200 SMA). Support below can be found at 0.7562 (Daily Low), 0.7545 (Hourly 20 EMA), 0.7538 (Weekly Low), 0.7510 (Monthly Low) and 0.7498 (Daily Classic S1). Looking to candlestick patterns, we can see a Hammer formation on the 1-hour chart.