CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

AUD/USD heavy on 0.77 handle and capped by 200-D SMA

4/18/2018, 9:58:49 AMTrading Strategies
AUD/USD heavy on 0.77 handle and capped by 200-D SMA

AUD/USD traded in a 30 pip range in NY after being capped by the 55-D SMA in European trade. Currently, AUD/USD is trading at 0.7765, up 0.03% on the day, having posted a daily high at 0.7777 and low at 0.7765.

AUD/USD is slowly drifting to the downside as we enter Tokyo, trading in a wider consolidation between 0.7760 lows and 0.7759 recent highs and nestled around the100 and 10-hr SMA meeting ay 0.7769. 

Forex today: corporate earnings in focus, dollar a proxy trade on data

The Antipodeans were mostly defensive overnight weighed by a lower CRB and falling metal prices in European trade that the Aussie barely recovered from. Yesterday,  the RBA minutes basically repeated that the next move in rates was likely a hike, although the markets are more focussed on the developing risks to such an outlook. (Chinese GDP was around expectations at +6.8% and there was a little reaction but IP was a bit worse than expected, evened out by better retail sales). 

AUD/USD levels

AUD/USD is running out of momentum in the top end of the narrowing and descending range, capped by the 200-D SMA and set up for a much lower low on the daily sticks. On the wide, analysts at Commerzbank explained that the convergence of resistance here between the 200-day ma with the top of the channel at 0.7820 and the 38.2% retracement at 0.7831, coupled with a TD perfected set up, suggests that we should see the cross continue to fail here. "Key support remains the 78.6% retracement at 0.7637 and the 2016- 2018 uptrend line at 0.7628. The 61.8% Fibonacci retracement at 0.7744 offers initial support," the analysts added.