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18 Dec 2013
AUD/USD: Rally finds resistance at 0.8930
FXstreet.com (Córdoba) - The AUD/USD rose following the presentation of RBA Governor, Glenn Stevens at the Australian Parliament and reached at 0.8930 a fresh daily high, but lost momentum afterwards and retreated toward 0.8910, where currently trades, 0.13% above today's opening price. The Aussie is so far the strongest among commodity currencies in the Asian session.
AUD/USD outlook
Despite the recovery the AUD/USD continues to move with a bearish short-term bias. “Technically, the channel (downside) remains intact and the AUD looks set to remain choppy, but heavy, ahead of the Fed decision, although the 4 hour charts do show building bullish divergence and thus it will be necessary to be pretty nimble if we do make another attempt on the 2013 low at 0.8848”, says Jim Langlands from FX Charts.
According to him a break below 0.8844 would see a run towards our 0.8780 “below which would suggest a decline towards 0.8750, which should be very strong indeed, this being the base of the long term channel”.
AUD/USD outlook
Despite the recovery the AUD/USD continues to move with a bearish short-term bias. “Technically, the channel (downside) remains intact and the AUD looks set to remain choppy, but heavy, ahead of the Fed decision, although the 4 hour charts do show building bullish divergence and thus it will be necessary to be pretty nimble if we do make another attempt on the 2013 low at 0.8848”, says Jim Langlands from FX Charts.
According to him a break below 0.8844 would see a run towards our 0.8780 “below which would suggest a decline towards 0.8750, which should be very strong indeed, this being the base of the long term channel”.