Back
19 Feb 2014
AUD/USD: Mild sell-off leads to 0.90 test
FXStreet (Bali) - The AUD/USD is trading heavy in early Asia, with the break of 0.9015 - bottom of the hourly kumo cloud - leading to an acceleration towards the 0.9005/0.90 level.
The latest topside failure in the pair is quite 'revealing' of the intentions of the market short term, that is, sellers appears to have re-grouped to prevent further technical damage after the successful defense of 0.9080/85 key resistance. Tuesday's post RBA minutes-induced spike was greeted with strong selling interest at the critical resistance, with sellers producing a meritorious 8-hour impulsive decline in prices through late Asia/early Europe.
Below 0.9000, according to Jim Langlands, Founder at FXCharts, "would take a look at 0.8980 rising trend support, which for the time being should hold I think", the Analyst says. "If wrong, a break would see an acceleration to the downside for a look at 0.8920 (38.2% of 0.8659/0.9080), but I don’t think so – yet", Jim added.
The latest topside failure in the pair is quite 'revealing' of the intentions of the market short term, that is, sellers appears to have re-grouped to prevent further technical damage after the successful defense of 0.9080/85 key resistance. Tuesday's post RBA minutes-induced spike was greeted with strong selling interest at the critical resistance, with sellers producing a meritorious 8-hour impulsive decline in prices through late Asia/early Europe.
Below 0.9000, according to Jim Langlands, Founder at FXCharts, "would take a look at 0.8980 rising trend support, which for the time being should hold I think", the Analyst says. "If wrong, a break would see an acceleration to the downside for a look at 0.8920 (38.2% of 0.8659/0.9080), but I don’t think so – yet", Jim added.