19 Nov 2013
AUD/USD posts indecisive candle Monday – below “correction resistance” at 0.9397
FXstreet.com (Barcelona) - The AUD/USD may still rip to the upside, but the cross has paused just below “correction resistance” at 0.9397 to wait for further direction / evidence from the US and Australia.
AUD/USD traders already reacting to RBA and Aussie data; waiting for Fed Heads
Sometimes traders take a security to a certain point technically and wait for some fundamental push to get it through the level in question. That appears to be what may have happened in the last day with the AUD/USD. Tuesday’s data had the potential to push the cross through the resistance. But the combination of Aussie data, RBA comments and Chinese data has produced a net neutral result for the AUD/USD thus far on Tuesday. It may take more weak data and/or more dovish comments out of the US to get the job done for AUD/USD bulls.
For the rest of the session Tuesday, traders will only get to react to US economic leaders, Treasury Secretary Lew and FOMC Governor Evans.
Technical outlook for AUD/USD
Technicians note that the AUD/USD has resistance starting with the short-term “correction resistance” at 0.9397 and the 11/1 close at 0.9434. Support comes in at 0.9266 – the recent “c” wave of an “abc” correction to the downside. The eventual upside target for AUD/USD comes in all the way up at 1.0070.
AUD/USD traders already reacting to RBA and Aussie data; waiting for Fed Heads
Sometimes traders take a security to a certain point technically and wait for some fundamental push to get it through the level in question. That appears to be what may have happened in the last day with the AUD/USD. Tuesday’s data had the potential to push the cross through the resistance. But the combination of Aussie data, RBA comments and Chinese data has produced a net neutral result for the AUD/USD thus far on Tuesday. It may take more weak data and/or more dovish comments out of the US to get the job done for AUD/USD bulls.
For the rest of the session Tuesday, traders will only get to react to US economic leaders, Treasury Secretary Lew and FOMC Governor Evans.
Technical outlook for AUD/USD
Technicians note that the AUD/USD has resistance starting with the short-term “correction resistance” at 0.9397 and the 11/1 close at 0.9434. Support comes in at 0.9266 – the recent “c” wave of an “abc” correction to the downside. The eventual upside target for AUD/USD comes in all the way up at 1.0070.