November 30, 2021 15:06:17
AUD/USD clings to support around August lows
The aussie, like all risky, high yielding currencies has endured a lengthy losing streak in recent weeks. AUD/USD topped out at 0.7555 late last month. The major has moved swiftly lower in a steep descending channel.
Prices have now hit the August low at 0.7106. This short-term support mark has done its job so far. Below here lies the June 2020 high at 0.7064 and then the lows from Autumn of last year around 0.6991/0.7005.
We are oversold on the daily RSI so working off those conditions at the moment. Initial resistance sits at the September lows at 0.7169 and then the one-month trendline at 0.7210. The 50-day and 100-day SMAs reside above here at 0.7335. The seven-month downtrend should reassert itself in due course, though there may be more consolidation around this key support level after the steep drop.
USD/CAD hits the highs and recoils
Bulls printed a new cycle high earlier today at 1.2812 but have moved back below the figure. Prices look well supported in the high 1.27s. That said, a push past the low 1.28s has eluded buyers on a few occasions since Friday. This area coincides with the July high, which proved fleeting as sellers swiftly pushed back the pair below 1.26.
If we are simply in bullish consolidation mode, buyers will aim for the mid-figure area and the September high above 1.29. Spike highs over the summer warn of heavy going around here.
Initial support is this week’s low at 1.2720. The bottom of the ascending channel comes in around 1.2682. Price action in oil, below its 200-day SMA at $72.80, will be worth watching as the commodity continues to sell off.
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