Nick Nasad
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GBP/AUD - Pivotal Moment As Old Support Tested as Resistance

The commodity currencies have been weak this week, as copper and oil fall, while the EUR and GBP have managed to rally against the USD on the back of expectations of a longer time schedule for Fed tapering.

  • Combing those 2 together in a pair like the GBP/AUD we have an important moment from a technical standpoint as the pair tests an old level of support at 1.6875 and the question is whether it will act as a resistance level (which would indicate a further move in favor of the AUD), or if price pushes above and holds that level, in which case it indicates a possible continuation of the rally seen from April through August and a return to the 1.7380 area.