#AUDUSD @ 0.69551 A risk-on impulse favored risk-perceived currencies like the Australian Dollar. (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)]

• A risk-on impulse favored risk-perceived currencies like the Australian Dollar.
• The US housing market continues to deteriorate, as shown by Existing Home Sales plunging.
• Fed officials favor a deceleration of rate hikes, though the higher-for-longer stance remains unchanged.

The pair currently trades last at 0.69551.

The previous day high was 0.6948 while the previous day low was 0.6872. The daily 38.2% Fib levels comes at 0.6901, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6919, expected to provide support.

The AUD/USD edged higher in the mid-North American session on Friday, following a soft employment report from Australia that spurred a fall beneath 0.6900. Friday, the story is different, with the AUD/USD recovering some ground while the US Dollar (USD) is pairing its earlier gains. At the time of writing, the AUD/USD is trading at 0.69600, above its opening price by 0.74%.

Wall Street continues to portray investors’ positive mood. Data from the United States (US) flashes deterioration, as Existing Home Sales for December plunged 1.5%, its lowest level since November 2010, according to the National Association of Realtors.

“December was another difficult month for buyers, who continue to face limited inventory and high mortgage rates,” said NAR Chief Economist Lawrence Yun. “However, expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.”

Meanwhile, a retracement in the US Dollar Index, which tracks the buck’s performance against its peers, prints minimal gains of 0.06%, at 102.123, after hitting a daily high of 102.552. Contrarily, US Treasury yields advance, with the 10-year benchmark note rate up nine bps, at 3.488%.

In the meantime, a couple of Fed officials crossed newswires. Philadelphia Fed President Patrick Harker, opened the door for a downshift in interest rate increases, saying, “Hikes of 25 basis points will be appropriate going forward.” He expects the US economy to grow by 1% and the unemployment rate to jump to 4.5% from 3.5%. Later, KansasCiti Fed President Esther George said that the Federal Reserve must be “patient” to see if inflation in the services sector is waning.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6957 at the time of writing. Pair opened at 0.6912 and is trading with a change of 0.65 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6847, 50 SMA 0.6775, 100 SMA @ 0.6639 and 200 SMA @ 0.6822.

The previous day high was 0.6948 while the previous day low was 0.6872. The daily 38.2% Fib levels comes at 0.6901, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6919, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6874, 0.6835, 0.6797
• Pivot resistance is noted at 0.695, 0.6987, 0.7026

[/s2If]
Join Our Telegram Group