- English
- 中文版
Analysis
.jpg?height=93&quality=100)
AUD has been weaker against the pound given the nosedive in risky assets and the Chinese growth downgrade narrative. The pound doesn’t fare much better to be honest with a very difficult economic environment fast approaching. Additionally, rates pricing for the BoE’s bank rate is too aggressive. Lastly, Brexit news is beginning to ramp up again. This could easily see this cross roll over lower.
The 4-hour chart shows price is currently fluctuating in a range between 1.785 and 1.718/1.72. Price is currently rebounding off the daily 23.6% Fibonacci level. Not too far below there we have the key 50-day and 200-day SMAs. The RSI is trying to bounce off the 60 level with some room before we get near the overbought boundary again. One could play this both ways with longs targeting 1.785 and shorts targeting the 50-day/200-day SMA after a break of the 1.765.
Related articles
Ready to trade?
It's quick and easy to get started. Apply in minutes with our simple application process.
The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.