NEWS ANALISIS

AUD and AUD crosses analysed in a snap shot– TDS

Analysts at TD Securities gave us a snap shot at some of the AUD crosses.

Analysts at TD Securities gave us a snap shot at some of the AUD crosses.

Key Quotes:

“AUD/USD's strong recovery from 0.9330 support suggests moderate upside risks for the AUD near-term – but scope for a more sustained recovery remains limited after the heavy fall (weekly reversal) seen in early July”.

“EUR/AUD trades softly through the close of the week and looks technically poised to extend lower; new cycle lows will support the outlook for a drop to 1.39.”

“AUD/JPY's recovery today reflects the firmer AUD tone evident elsewhere but we think scope for AUD gains is limited here as well; we look for resistance in the 96.00/50 zone near-term”.

Session recap – Risk aversion ebbing, key levels held

The end of the week has seen key levels under attack with the risk aversion conditions in play while investors are concerned over the tighter sanctions that Europe might impose over Russia.

The end of the week has seen key levels under attack with the risk aversion conditions in play while investors are concerned over the tighter sanctions that Europe might impose over Russia.

GBP/USD has managed to reclaim some dignity in an attempt on the 1.71 handle but has fallen shy of that territory and is closing below the pivot at the end of a down week for the pair. The nail in the coffin was the rumors on Carney offering a dovish outlook to the media, and this triggered panic selling triggering stop losses down to key supporting grounds.

USD/JPY has been one for a pot of tea and a comfortable foot-rest that stayed within a tight range. Although the risk aversion has ebbed and there appears to be a bullish bias towards the greenback, MACD and RSI are giving signals that there is still ample room for downside should support give way.

EUR/USD dropped to a half year low below the 1.35 handle but was picked up by bids before we entered testing support levels below 1.3480. We have managed a rally back into the 1.35 handle and the 1.3530’s gave us the summit into the closing hour, back into the sideways channel and all to play for at the start of next week.

Key Events:

Michigan consumer sentiment index falls

Obama: “Rebels received heavy flow of support, weapons from Russia; Russia has refused to de-escalate crisis; US has capacity to increase sanctions on Russia and is prepared to do so”, - Jamie Coleman, FXBeat.

GBP/USD closing before the pivot on 1.70 handle

GBP/USD is trading at 1.7084, down -0.09% on the day, having posted a daily high at 1.7119 and low at 1.7036.

GBP/USD is trading at 1.7084, down -0.09% on the day, having posted a daily high at 1.7119 and low at 1.7036.

GBP/USD has fallen shy of the trophy 1.71 handle at the end of this week after a valiant effort to withhold its champion status. Rumours that Carney had given a dovish interview to the press was eventually gathered as being untrue. We are closing here below the pivot by the looks of it.

GBP/USD Levels

Spot is presently trading at 1.7086, and next resistance can be seen at 1.7101 (Daily Open), 1.7110 1.7114 (Hourly 100 SMA) and 1.7119 (Daily High). Support below can be found at 1.7085 (Yesterday's Low), 1.7082 (Daily 20 SMA) and 1.7075 (Weekly Classic S1).