AUD/USD Technicals – Back Within 0.892 – 0.897 Consolidation

AUD/USD Technicals – Back Within 0.892 – 0.897 Consolidation

Time Table

despite the strong bearishness seen in AUD / USD in 2013, the bulls actually did much better compared to the other major pairs return, as EUR / USD and GBP / USD. Prices have retraced a much more important part of the post lower narrowing from the rest, with today's gathering even managing to push above the peaks that occurred after wild fluctuations display ad FOMC. Prices have since traded lower towards 0,892, but even then we are above the tops of pre FOMC announcement, noting the strong upward bias currently in. Not only that, it seems that the bears can not not be able to push much beyond 0,892, with additional support coming in the form of higher Top Channel, making a push 0.897 a possibility.

However, it is not all rosy for the bulls. Stochastic readings actually encourage more bearish pullback with a down cycle signal is formed in the last two hours. Again, the Stochastic curve can probably rebound after several "support levels" between 40.0 to 60.0, which is consistent with price finding support Top Channel now or consolidation of between 0.889 to 0.892 seen Wednesday before the announcement of the FOMC should Canal Top is violated. therefore, the overall growth prospects remain intact, and short-term decreases should be shallow.

weekly Chart

the sharp rise in short-term response observed is perhaps a reflection of the long-term bullish decline. prices have managed to carve out a new 2013 low last week, but 0.89 support remain strong. with Stochastic oversold momentum that reflects a long-term decline to 0.93 or at least marking the descending trend line should not be excluded.

that said, long-term fundamentals remain bearish for the AUD / USD. Unlike her counterpart is close NZD / USD, AUD has no expectations for rate hikes buffer against the USD incoming force. Instead, the RBA Central Bank may need to cut even lower rates to keep the economy afloat, since the country will be a mild form of austerity in 2014 even as the stalls the mining sector. Simply put, economic growth in Australia not looking good, which in itself would already pulling Aussie lower without the threat of lower interest rates - a proven recipe that will drive the carry traders and hot money flow away Australia and AUD bring even lower. Therefore, overall long-term outlook remains bearish, and traders should not expect to change the current downturn feeling

Links :.
EUR / USD Technicals - Bearish Bias But Bullish Strong support expected
Gold Technicals - Bullish Pullback Seen But Bears Firmly In Play
NZD / USD Technical - bearish below 0.82 but do not expect Landslide

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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