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27 May 2014
AUD/USD retreated from resistance of 0.9260
FXStreet (Moscow) - AUD/USD knocked at the resistance area of 0.9260, but retraced to current levels of 0.9254.
Aussie needs time
AUD/USD spent Monday in a depressingly narrow range and managed to gain some ground as traders are hesitant to push the Australian currency to new cyclical lows. The time for bearish assault has not come yet, despite rather dismal fundamentals that usually drive Aussie to the South. Namely, pretty dovish comments from RBA officials and poor Chinese PMI data should have put the pair under pressure. Technically, AUD/USD has reached a strong support area intensified by double top neckline on weekly charts. The chances are that it will spend some time consolidating with light bullish bias (within the frame of the correction) and gathering strength before a new attempt to clearly break below 0.9200. On the intraday basis watch for risk sentiments and beware of 0.9260 followed by May 22 high at 0.9274 on the downside and 0.9210 on the upside.
What price levels and patterns have to be considered?
Spot is presently trading at 0.9255, and next resistance can be seen at 0.9261 (Daily Classic R2), 0.9266 (Daily High), 0.9272 (Weekly Classic PP), 0.9272 (Daily Classic R3) and 0.9290 (Hourly 200 SMA).
Support below can be found at 0.9252 (Yesterday's High), 0.9250 (Daily Classic R1), 0.9245 (Hourly 20 EMA), 0.9239 (Daily Classic PP) and 0.9237 (Hourly 100 SMA).
Looking to candlestick patterns, we can see a Doji formation on the 4-hour chart .
Aussie needs time
AUD/USD spent Monday in a depressingly narrow range and managed to gain some ground as traders are hesitant to push the Australian currency to new cyclical lows. The time for bearish assault has not come yet, despite rather dismal fundamentals that usually drive Aussie to the South. Namely, pretty dovish comments from RBA officials and poor Chinese PMI data should have put the pair under pressure. Technically, AUD/USD has reached a strong support area intensified by double top neckline on weekly charts. The chances are that it will spend some time consolidating with light bullish bias (within the frame of the correction) and gathering strength before a new attempt to clearly break below 0.9200. On the intraday basis watch for risk sentiments and beware of 0.9260 followed by May 22 high at 0.9274 on the downside and 0.9210 on the upside.
What price levels and patterns have to be considered?
Spot is presently trading at 0.9255, and next resistance can be seen at 0.9261 (Daily Classic R2), 0.9266 (Daily High), 0.9272 (Weekly Classic PP), 0.9272 (Daily Classic R3) and 0.9290 (Hourly 200 SMA).
Support below can be found at 0.9252 (Yesterday's High), 0.9250 (Daily Classic R1), 0.9245 (Hourly 20 EMA), 0.9239 (Daily Classic PP) and 0.9237 (Hourly 100 SMA).
Looking to candlestick patterns, we can see a Doji formation on the 4-hour chart .