#AUDUSD @ 0.63659 The aussie bounces up from 0.6210 and erases the previous two days’ losses. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• The aussie bounces up from 0.6210 and erases the previous two days’ losses.
• Fed speculation and BoJ intervention hit the USD.
• AUD/USD is expected to remain capped below 0.6390.

The pair currently trades last at 0.63659.

The previous day high was 0.6356 while the previous day low was 0.6228. The daily 38.2% Fib levels comes at 0.6307, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6277, expected to provide support.

The Australian dollar has featured a strong recovery on Friday’s US trading session. The pair bounced up from session lows at 0.6210, rallying all the way to levels right below 0.6380 and retracing the last two day’s decline.

A news report by the Wall Street Journal suggested earlier on Friday that Federal Reserve officials are open to discussing how to signal a smaller rate hike in December which has hurt demand on the USD across the board.

The report has offset the impact of the hawkish rhetoric of Fed members. Just on Thursday, the Philadelphia Fed President Patrick Harker assured that the bank will “keep raising rates for a while.”

Furthermore, an alleged intervention by the Bank of Japan and the Japanese Finance Ministry has pushed the yen higher across the board. The USD has tumbled more than 2.5% in a matter of minutes, which has hit all US dollar crosses.

From a longer-term perspective, FX analysts at UOB remain skeptical about the possibility of a sustained uptrend: “Our latest narrative from Tuesday (18 Oct, spot at 0.6295) still stands. As highlighted, AUD is likely to consolidate and trade between 0.6190 and 0.6390 for the time being.”

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6354 at the time of writing. Pair opened at 0.6281 and is trading with a change of 1.16 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6381, 50 SMA 0.6654, 100 SMA @ 0.6798 and 200 SMA @ 0.7014.

The previous day high was 0.6356 while the previous day low was 0.6228. The daily 38.2% Fib levels comes at 0.6307, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6277, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6221, 0.6161, 0.6093
• Pivot resistance is noted at 0.6349, 0.6416, 0.6476

[/s2If]
Join Our Telegram Group