26 Nov 2013
AUD/USD starting to show constructive price action intraday
FXstreet.com (Barcelona) - For the first time since its double topside failure at 0.9450 back on Nov 19, the AUD/USD has been able to show some signs of strength, with the selling rout pause at technical 0.9120 support, now combined with the RBA Deputy Governor Philip Lowe's comments over the "fairly high threshold for intervention", forcing intraday sellers to bail out.
With the latest clearance off 0.9190, the Aussie is showing tentative indications that a larger upward correction may now get underway, should the resistance zone 0.92/0.9220 be overcome on an hourly basis. Such technical breakout, if occurs, may allow the exchange rate to see higher territory towards 0.9250 - double intraday top Nov 21/22/kumo top H1 - ahead of 0.9280/90.
For now, technical evidence suggests that the worst should be over for the AUD/USD, with price having recently broken north of the Kijun sen on the hourly, only to now enter a rather thick bearish kumo cloud.
Fundamentally, one of the main catalyst hammering AUD prices in recent days, that is, fears of RBA intervention - emphasized by RBA Stevens last week -, has now been somehow played down by Lowe. While not a AUD bear trend changer, it certainly may revitalize the appeal to play some AUD intraday longs as price seeks to readjust to a higher value after its sharp selling.
With the latest clearance off 0.9190, the Aussie is showing tentative indications that a larger upward correction may now get underway, should the resistance zone 0.92/0.9220 be overcome on an hourly basis. Such technical breakout, if occurs, may allow the exchange rate to see higher territory towards 0.9250 - double intraday top Nov 21/22/kumo top H1 - ahead of 0.9280/90.
For now, technical evidence suggests that the worst should be over for the AUD/USD, with price having recently broken north of the Kijun sen on the hourly, only to now enter a rather thick bearish kumo cloud.
Fundamentally, one of the main catalyst hammering AUD prices in recent days, that is, fears of RBA intervention - emphasized by RBA Stevens last week -, has now been somehow played down by Lowe. While not a AUD bear trend changer, it certainly may revitalize the appeal to play some AUD intraday longs as price seeks to readjust to a higher value after its sharp selling.