AUD/USD: Yellen s appointment made the pair fall

October 10, 2013

Current trend

This week the pair has been trading within the range of 0.9483-0.9386. Today however the “aussi” experienced high volatility of the market and hit local highs at 0.9471. The rise was caused by the favourable releases of unemployment data in Australia. Inevitable decrease down to the level of 0.9387 followed the rise. The Dollar was strengthened due to the Janet Yellen’s appointment as a new Head of FRS of USA. Investors hope that new Head will at last cancel the quantitive easing programs. Meanwhile the Dollar is still under pressure of the US budget crisis, and Australian currency has all the chances to regain its positions.

Support and resistance

The pair is trading now around key level of 0.9430 (middle MA of Bollinger Bands indicator). If the price consolidates above this level the pair will go all the way up to the levels of 0.9470 (upper MA of Bollinger Bands) and 0.9515. Otherwise the fall down to the level of 0.9395 is probable.

Technical indicators give us controversial signals. MACD histogram is in overbought zone, its volumes are decreasing. Stochastic lines can soon cross and reverse upwards, giving a signal to buy.

Trading tips

Regarding the situation it is recommended to open long trades at 0.9440 with targets at 0.9515. Short positions can be placed at the level of 0.9420 with Take Profit orders around 0.9395.

Dmitriy Zolotov

Analyst of LiteForex Group of Companies

Publication source
LiteForex information  LiteForex reviews

December 9, 2016
Coeure - ECB ready to do more
ECB board member Benoit Coeure commented the yesterday decision in a radio interview. The central bank announced QE tapering stressing that it does not mean less engagement...
December 8, 2016
Tapering and extending
The main challenge for markets today will be steering through the messages that emerge from the ECB meeting and press conference. Whereas the Fed meeting next week is seen as a near certainty in terms of its outcome, this is not the same for the ECB...
December 7, 2016
Oil ma pull back to $40
The oil price fell for the first time in 4 days today as skepticism creeped in over some OPEC member’s commitment to keep to their end of the deal and cut production...

OANDA Rating
Grand Capital Rating
HYCM Rating
FIBO Group Rating
FXCM Rating
Fort Financial Services Rating

OptionsXO Rating
OptionFair Rating
Banc De Binary Rating
24option Rating
TopOption Rating
Grand Option Rating