23 Oct 2013
AUD/USD consolidating post-NFP gains or starting something more ominous; support 0.9693
FXstreet.com (Barcelona) - The AUD/USD exploded higher after the soft US jobs report Tuesday. However, once the projected upside target of 0.9699 was reached (and exceeded), the countdown to a pullback started for many technicians.
Is AUD/USD rising on Aussie strength, greenback weakness or a combination of both?
AUD/USD traders have been bulling the cross higher recently – mostly attributable to geenback weakness according to most analysts. They were / are probably right, but there are more and more pieces of evidence of potential recovery in Australia. Most of the evidence has fallen into the category of “business confidence” and not so much in the area of consumer confidence.
Wednesday, traders will be reacting to Aussie Leading Indicators; Aussie CPI; US Monthly Mortgage Apps; US Export Price Index; and, the US Housing Price Index.
Technical outlook for AUD/USD
Technicians note that the AUD/USD has finally met the maximum projected upside target (based on Elliott Wave measuring techniques) at 0.9699. Now, they add, a healthy pullback may have commenced with possible downside targets of 0.9393 and 0.9289 – both Fibonacci retracements of the five wave rally that started in August. The resistance for AUD/USD comes in at today’s high of 0.9730 and is followed up by the June 1st high of 0.9790.
Is AUD/USD rising on Aussie strength, greenback weakness or a combination of both?
AUD/USD traders have been bulling the cross higher recently – mostly attributable to geenback weakness according to most analysts. They were / are probably right, but there are more and more pieces of evidence of potential recovery in Australia. Most of the evidence has fallen into the category of “business confidence” and not so much in the area of consumer confidence.
Wednesday, traders will be reacting to Aussie Leading Indicators; Aussie CPI; US Monthly Mortgage Apps; US Export Price Index; and, the US Housing Price Index.
Technical outlook for AUD/USD
Technicians note that the AUD/USD has finally met the maximum projected upside target (based on Elliott Wave measuring techniques) at 0.9699. Now, they add, a healthy pullback may have commenced with possible downside targets of 0.9393 and 0.9289 – both Fibonacci retracements of the five wave rally that started in August. The resistance for AUD/USD comes in at today’s high of 0.9730 and is followed up by the June 1st high of 0.9790.