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18 Dec 2013
AUD/USD, exhaustion selling? - 2ndSkies
FXstreet.com (Bali) - AUD/USD came into contact with major support at 0.8880/85 on Tuesday, before a rebound snapped the rate back up towards 0.8920 or thereabouts, ahead of the FOMC meeting, and with traders not finding fresh excuses to sell the AUD post RBA Stevens comments.
According to Chris Capre, Founder at 2ndSkies: "In the 1hr intra-day chart, the pair formed a corrective-consolidation phase, and then broke out to the downside, only to go nowhere, and bounce. One has to ask, if the sellers are in control, where did they go and why was there no follow through? Inquiring minds want to know."
Capre adds: "If the pair can close back above into the consolidation range on a 1hr or 4hr basis, then I suspect some bears will take their foot off the gas and some profits, which would likely create a bounce in the pair. Bulls can watch for this 1hr/4hr close into the range, with a first target being 8990, and a second target being 9050."
According to Chris Capre, Founder at 2ndSkies: "In the 1hr intra-day chart, the pair formed a corrective-consolidation phase, and then broke out to the downside, only to go nowhere, and bounce. One has to ask, if the sellers are in control, where did they go and why was there no follow through? Inquiring minds want to know."
Capre adds: "If the pair can close back above into the consolidation range on a 1hr or 4hr basis, then I suspect some bears will take their foot off the gas and some profits, which would likely create a bounce in the pair. Bulls can watch for this 1hr/4hr close into the range, with a first target being 8990, and a second target being 9050."