AUD/USD might retrace further to 1.0390-95 – FXMR

The “risk back on” sentiment in mid-January that lifted up the EUR and the AUD might end today as the EU summit is seen with much concerns: “Recent German proposals to take control of the Greek budget could see some sharp words whilst the IIF talks to agree a Greek debt writedown are by no means completed”, says GAVIN GRIER-REES, analyst at FX Market Report.

Adding to the “risk off” from Greece, threats of downgrades toward Australian banks and higher yields on bond markets and a delayed monetary easing from the PBoC are scaring Aussie investors.

Grier-Rees pointed to 5-day MA as the first support, from where the AUD/USD bounced back twice last week, “however the hourly trend is bearish and we think this could yet retrace further to the next support at 1.0390‐95 and the bullish 22‐day average.


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