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16 May 2013
Forex: Break above 0.9920 key to upgrade outlook for the Aussie
FXstreet.com (Barcelona) - The Australian Dollar is enjoyed the resurgence of buyers around the 0.9850 year lows to currently test a twin top at the 0.9915/18 vicinity. The pair has now to violate this level to upgrade its short term bullish technical outlook.
As observed by Chris Moyer, editor at FXstreet.com, on today's pattern analysis: "1 hour chart is forming a possible inverse head & shoulders bottom. Also, there are numerous ‘bullish divergences’ between price and RSI which is another sign downside momentum is struggling to show up. owever, it should be realized this development often leads to a ‘counter trend bounce’ not a substantial trend change. Pattern needs an hourly close above 0.9920 to be confirmed which targets 0.9990."
A break and close above 0.9920 is key as it would break what has been a constant pattern since the multi-month range break, where hourly bounces have failed to reach and close above previous swings highs, the latest attempts on May 15 and yesterday an example of the ongoing selling interest present. While Chris mentions a level near parity as final target, a hurdle to be faced if the rate is to recover ground will also be around 0.9940, May 13 low. Clearance above it clears up the picture.
As observed by Chris Moyer, editor at FXstreet.com, on today's pattern analysis: "1 hour chart is forming a possible inverse head & shoulders bottom. Also, there are numerous ‘bullish divergences’ between price and RSI which is another sign downside momentum is struggling to show up. owever, it should be realized this development often leads to a ‘counter trend bounce’ not a substantial trend change. Pattern needs an hourly close above 0.9920 to be confirmed which targets 0.9990."
A break and close above 0.9920 is key as it would break what has been a constant pattern since the multi-month range break, where hourly bounces have failed to reach and close above previous swings highs, the latest attempts on May 15 and yesterday an example of the ongoing selling interest present. While Chris mentions a level near parity as final target, a hurdle to be faced if the rate is to recover ground will also be around 0.9940, May 13 low. Clearance above it clears up the picture.