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17 Mar 2014
Flash: AUD/USD 0.9086/0.9132 resistance area continues to cap - Commerzbank
FXStreet (Barcelona) - Axel Rudolph, Senior Technical Analyst at Commerzbank notes that last week’s AUD/USD sharp reversal higher off the 55 day moving average at .8932 took it swiftly back to the 0.9086/0.9132 resistance area which is made up of the January high and the current March high.
Key Quotes
“There it failed once more, though, and dropped back to the psychological 0.9000 region from where it is bouncing back today. Above 0.9132 lie the 2013-2014 resistance line at 0.9139 and the 200 day moving average at 0.9154 which should cap. Slips should find support between the current March lows at 0.8925 and 0.8891.”
“While trading above here, upside pressure should be maintained. As an aside it is possible that what we are seeing an inverse head and shoulders pattern which will offer a target of 0.9500, but as patterns do not outweigh downtrends, we look for a move to the long term resistance line only for now.”
Key Quotes
“There it failed once more, though, and dropped back to the psychological 0.9000 region from where it is bouncing back today. Above 0.9132 lie the 2013-2014 resistance line at 0.9139 and the 200 day moving average at 0.9154 which should cap. Slips should find support between the current March lows at 0.8925 and 0.8891.”
“While trading above here, upside pressure should be maintained. As an aside it is possible that what we are seeing an inverse head and shoulders pattern which will offer a target of 0.9500, but as patterns do not outweigh downtrends, we look for a move to the long term resistance line only for now.”