AUD/USD supply capping bullish run

FXStreet (Guatemala) – AUD/USD is currently trading at 0.7677 with high of 0.7710 and a low of 0.7669.

AUD/USD has been in recovery mode since the bearish gap and lows printed down at 0.7566 yesterday in Asia. The bulls managed a recovery up to aforementioned highs. News over the weekend saw another cut in China’s interest rates and reserve requirements but these events failed to prevent a continued slide in Chinese shares but likely supported the Aussie on cheaper money supply in China as the PBoC seek to boost the local economy. Instead, the Aussie extended yesterdays session’s bounce while markets digested the Greek debacle and investors looked for alternative assets and safe havens, including gold supporting the Aussie.

However, Valeria Bednarik, chief analyst at FXStreet explained that, in the 4 hours chart the upside seems limited. “The price hovers around a mild bearish 20 SMA a few pips below the current level, whilst the technical indicators have turned south below their mid-lines, after correcting oversold readings reached earlier in the week. A downward acceleration below the 0.7640 level should confirm additional declines for this Tuesday, down to the 0.7530/60 region.”

AUD/USD is currently trading at 0.7677 with high of 0.7710 and a low of 0.7669.

(Market News Provided by FXstreet)