The Australian dollar gave a sharp downward spike against the U.S. dollar yesterday as the Reserve Bank of Australia said that they want to see the Australian dollar at 85 U.S. cents, which means they still want the currency to fall by more than 400 points.
The pair entered below the critical support level of 0.9073 as we mentioned in our previous report, so it entered bearish zone so it continued to fall and is currently trading at 0.8925 where strong pressure is there on the pair from bears. The pair is suitable to be sold as long as the pair remains below the critical resistance level of 0.9045, where traders are now eyeing to take the pair down to the level where RBA wants it to be.
For intraday traders, a break below the support level at 0.8900 could take the pair down further till 0.8868 and 0.8841 while a move above pivot point of 0.8969 could lift the pair up to 0.8996 and 0.9023 for its bullish correction.
No more Bulls for the Pound
The British pound dropped yesterday against the U.S. dollar where it couldn’t break the resistance level of 1.6418 after which it plunged by 80 points and is currently trading at 1.6346 before the start of the European session on Friday. There is a strong resistance level at 1.6380 below which the bears would remain in control over the pair; whereas, a move below the support level at 1.6321 could take it down to 1.6301 and 1.6282.
The U.S. dollar got stronger against the gold yesterday where the metal dropped sharply from the 1255 area down to the 1222 support level, where it has made a double bottom and is currently trading at 1228. The impact was due to the hint that the investors are getting from the side of the FED regarding the reduction in the bond buying quantity, where tapering is possible in this month as well but only time will tell. Moreover, the retail sales and the core retail sales of the U.S. showed a good improvement for the past month that let the U.S. dollar gain.