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1 Apr 2014
AUD/USD: Aussie still falling from grace
FXStreet (San Francisco) - Aussie bulls got a huge disappointment past Asian session, when the pair faltered again around 0.9300 following RBA’s economic policy meeting. Having left rates unchanged, the wording was a bit dovish, with growth below its trend in 2013 and some veiled concerns over the currency strength.
Double top in place?
The technical picture has then left a double top in the 4 hours chart as of 2 highs around the 0.9300 figure from March 28th and April 1st, with the valley in between both at 0.9217, Monday low. Pretty short term figure, but nevertheless a probable bearish sign as a break below the mentioned neckline should see a 90 pips slide and a retest of 0.9100 price zone in the hours to come.
Besides the short term picture, the pair has been bullish for the last 2 months and many investors start considering the possibility of a reversal. However, Valeria Bednarik, FXStreet chief analyst, states that “seems too early to call for a top and bearish movements will likely be seen as corrective until a breach of key 0.9000 psychological level.” In the short term, she sees a mild bearish tone that can extend down to 0.9210 area, while once below down to 0.9170.
Double top in place?
The technical picture has then left a double top in the 4 hours chart as of 2 highs around the 0.9300 figure from March 28th and April 1st, with the valley in between both at 0.9217, Monday low. Pretty short term figure, but nevertheless a probable bearish sign as a break below the mentioned neckline should see a 90 pips slide and a retest of 0.9100 price zone in the hours to come.
Besides the short term picture, the pair has been bullish for the last 2 months and many investors start considering the possibility of a reversal. However, Valeria Bednarik, FXStreet chief analyst, states that “seems too early to call for a top and bearish movements will likely be seen as corrective until a breach of key 0.9000 psychological level.” In the short term, she sees a mild bearish tone that can extend down to 0.9210 area, while once below down to 0.9170.