AUDUSD Looking Strong - Technical View

24 October, 2013

The Aussie dollar is looking strong after touching on major support levels overnight. Recent heavy falling after yesterday’s announcement on Chinese banks saw the pair touch on the 0.96126 mark before pulling back upwards.

The AUDUSD pair certainly took a heavy beating but did not break through the current trend line or even break through the support levels in the marketplace – this signals that the market is reluctant to give up on the current bull run. Looking forward, the next major resistance level for the Aussie dollar will be the 50.0 fib mark at 0.91746 and signal further support in the markets for the pair.

Despite this view of a bullish run, the 200 MA is currently sitting at the support level and any breakthrough will have to take this into consideration. Despite the MA though, support for the pair to rise does not look stronger than before.

When zooming further out on the daily chart, it is clear that if the pair moves past the 0.97647 mark, it is likely the next point of resistance won't be until the fib 61.8 level and the 1000 level which will act as the psychological barrier.

When using the RSI, it is key to note that strong buying pressure is still there in the market, and looks set to continue so. If markets were to start correcting, we would expect to see the RSI fall to the 50.0 mark and below and stay below that mark. However, if trending is to continue, I imagine it would stay well above the 50 mark with the occasional pullback.

 Written by Alex Gurr, Currency Analyst at Blackwell Global.


Source link  
Equity Markets Turn Negative

I am a keen watcher of the Indexes and also an active trader of them. If you have been following me, you would know that I am quite a fan of the FTSE 100, as I think it's a very easy index to trade as it does not offer a lot of surprises...

USDX: Looking to Bounce Back

When looking at the US Dollar Index (USDX), I was surprised to notice a sudden pullback on Thursday afternoon. It turned out that the markets reacted unfavorably to the news that continuous jobless claims increased to just over 350,000 last week...

AUDNZD Set to be Tested by Interest Rate Decision

The AUDNZD is looking a little more resilient after clawing back its recent losses against the Kiwi dollar over the weekend...


Looking for the GBPJPY to retrace

I have been a big fan of trading against the JPY since the autumn period. There are signs ahead for future JPY weakness, such as the inevitability for future QE...

Why I am watching the USDX

The US dollar is the cornerstone currency on this planet and as such, 80% of global trading activity done in the currency market involves the USD. One of the most interesting and most commonly traded CFDs/indices is the US dollar index...

Expecting a decline in Gold

Gold has witnessed a slight revival so far this month after hitting a three year low in December, when the Federal Reserve somewhat surprised the markets with a QE taper...


FTSE 100: Short Term Opportunities Abound

The FTSE 100 is a favourite of mine and a great index to trade, and it

How High Can The GBPAUD Go?

Right now, the AUD is weak. Thursday

AUDNZD: More Movements in the Works

The New Zealand economy has been one of the stars in 2013 of the global developed economies and in 2014, it looks likely that trend is set to continue...

  


Share: