22 May 2015
AUD/USD breaks Thursday's high, upside limited?
FXStreet (Bali) - The Australian Dollar has sprinted higher against the US Dollar since the Tokyo open, building up on recent modest gains seen since mid NY close, presently trading briefly above Thursday's high of 0.7913, reaching so far a high of 0.7917.
The pair traded with an even distribution of volume (as per tick volume profile) last Thursday, finding its high volume node area around the 0.7885/90. The trading conditions exhibited in the last 24h suggests that the pair should now enter a distribution phase, with trappy price action likely, ahead of the next risk events, including the US CPI numbers and Fed Yellen speech.
Technically, a break and hold above the 0.7913 area (Thursday's high) should allow for an extension of the recovery towards 0.7935/40 (May 20 high) ahead of 0.7950/60 (mid term players likely to step in as per 8-day MA crossing). On the downside, as long as price holds above today's point of control at 0.7885/90, sellers will be unlikely to have the upper hand on price dominance intraday.
The pair traded with an even distribution of volume (as per tick volume profile) last Thursday, finding its high volume node area around the 0.7885/90. The trading conditions exhibited in the last 24h suggests that the pair should now enter a distribution phase, with trappy price action likely, ahead of the next risk events, including the US CPI numbers and Fed Yellen speech.
Technically, a break and hold above the 0.7913 area (Thursday's high) should allow for an extension of the recovery towards 0.7935/40 (May 20 high) ahead of 0.7950/60 (mid term players likely to step in as per 8-day MA crossing). On the downside, as long as price holds above today's point of control at 0.7885/90, sellers will be unlikely to have the upper hand on price dominance intraday.