27 Oct 2014
AUD/USD: Range play continues, 0.88 equilibrium in slow Asia
FXStreet (Bali) - AUD/USD remains in a 1-month long consolidation pattern, with the lows at 0.8650 having proven a key area of support, allowing a 3-3.5 cents range-bound pattern limited by 0.90 to develop.
Aggressive shorts from early Sept have now had plenty of time to take profits and re-assess the next possible bias, amid an improved risk sentiment in the past week, and ahead of the FOMC on Wed.
Valeria Bedanarik, Chief Analyst at FXStreet: "The wider picture is still unclear, with the pair trading at the higher half of the 0.8640/0.8820 range, but short term bulls seem to be in control of the pair: the 1 hour chart shows indicators aiming higher after correcting overbought readings, while 20 SMA advances strongly now overcoming 200 EMA."
In the 4 hours chart, Valeria adds: "Technical readings maintain a quite neutral stance, with price still moving back and forth around a flat 20 SMA and indicators around their mildines. Risk remains to the upside on a surge of risk appetite, yet some follow through above mentioned resistance is still required to define an upward continuation in the pair."
Aggressive shorts from early Sept have now had plenty of time to take profits and re-assess the next possible bias, amid an improved risk sentiment in the past week, and ahead of the FOMC on Wed.
Valeria Bedanarik, Chief Analyst at FXStreet: "The wider picture is still unclear, with the pair trading at the higher half of the 0.8640/0.8820 range, but short term bulls seem to be in control of the pair: the 1 hour chart shows indicators aiming higher after correcting overbought readings, while 20 SMA advances strongly now overcoming 200 EMA."
In the 4 hours chart, Valeria adds: "Technical readings maintain a quite neutral stance, with price still moving back and forth around a flat 20 SMA and indicators around their mildines. Risk remains to the upside on a surge of risk appetite, yet some follow through above mentioned resistance is still required to define an upward continuation in the pair."