6 Mar 2014
AUD/USD holds near session highs
FXStreet (Bali) - AUD/USD is holding onto recent gains after the 1/2 cent spike following upbeat retail sales and trade balance releases in Australia.
Top of the cloud eyed, shallow pullbacks expected
AUDUSD is getting into close contact with the top of the daily cloud, which comes at 0.9050, as the Australian Dollar retains this week's bullish momentum which has so far allowed the currency to print four consecutive days of higher highs and higher lows.
However, traders should bear in mind that even if 0.9050 is reached, there is another key hurdle ahead at 0.9080, a proven tough resistance ahead of the NFP release on Friday. Should the NFP disappoint, there is some realistic prospects of the AUD/USD finally unraveling its 1-month long 1.5 cent range to potentially define an upward bias short term outside of the daily kumo cloud.
In case that we get intraday setbacks, 0.8990/0.90 round number should see solid buying interest ahead of 0.8965/70 - daily tenkan - . Given the clear upside momentum so far this week, the improving economic indicators in Australia - more reassurance on a neutral RBA - and amid the absence of 1st-tier risk events in neither AUD not USD until Friday - NFP -, it is probable that pullbacks off today's highs would be shallow, with dip buyers willing to participate actively.
Top of the cloud eyed, shallow pullbacks expected
AUDUSD is getting into close contact with the top of the daily cloud, which comes at 0.9050, as the Australian Dollar retains this week's bullish momentum which has so far allowed the currency to print four consecutive days of higher highs and higher lows.
However, traders should bear in mind that even if 0.9050 is reached, there is another key hurdle ahead at 0.9080, a proven tough resistance ahead of the NFP release on Friday. Should the NFP disappoint, there is some realistic prospects of the AUD/USD finally unraveling its 1-month long 1.5 cent range to potentially define an upward bias short term outside of the daily kumo cloud.
In case that we get intraday setbacks, 0.8990/0.90 round number should see solid buying interest ahead of 0.8965/70 - daily tenkan - . Given the clear upside momentum so far this week, the improving economic indicators in Australia - more reassurance on a neutral RBA - and amid the absence of 1st-tier risk events in neither AUD not USD until Friday - NFP -, it is probable that pullbacks off today's highs would be shallow, with dip buyers willing to participate actively.