FxWirePro: Aussie consolidates on lower Q1 GDP prediction, faces resistance at 21-EMA
The Australian dollar consolidated near a 2-week peak hit earlier in the week amid worries about the fast-spreading coronavirus. Earlier in the day, Australia’s Treasury Department stated that the coronavirus is expected…
The Australian dollar consolidated near a 2-week peak hit earlier in the week amid worries about the fast-spreading coronavirus.
Earlier in the day, Australia’s Treasury Department stated that the coronavirus is expected to ease half a percentage point from first-quarter growth, but that it is not forecasting a recession as yet.
The threat from the epidemic prompted the RBA to cut interest rates to an all-time low of 0.5 percent this week, while Australian Treasurer Josh Frydenberg flagged an imminent fiscal stimulus given the rapid spread of the coronavirus.
The Aussie was trading 0.1 percent up at 0.6633, having hit a high of 0.6645 on Tuesday, its highest since Feb. 20.
Technical indicators are turning bearish: RSI weak at 46.
21-EMA continues to acts as major resistance.
Next resistance is located at 0.6645, a break above could take it near 0.6676.
On the downside, support is seen at 0.6602, a break below could drag it till 0.6585 (7-EMA).
Recommendation: Good to sell on rallies around 0.6624, with stop loss of 0.6640, and target price of 0.6585.
