14 Mar 2014
Flash: AUD/USD once again fails in the 0.9086/0.9132 resistance area - Commerzbank
FXStreet (Barcelona) - Axel Rudolph, Senior Technical Analyst at Commerzbank notes that AUD/USD’s sharp reversal higher off the 55 day moving average at 0.8928 took it swiftly back to the 0.9086/0.9132 resistance area which is made up of the January high and the current March high.
Key Quotes
“There it failed once more, though, and dropped back to the psychological 0.9000 region around which it should oscillate today. Above 0.9132 lies the 200 day moving average at 0.9159 which, together with the 2013-2014 resistance line at 0.9169, should cap, though.”
“Slips should find support between the current March lows at 0.8925 and 0.8891. While trading above here, upside pressure should be maintained.”
“As an aside it is possible that what we are seeing an inverse head and shoulders pattern which will offer a target of 0.9500, but as patterns do not outweigh downtrends, we look for a move to the long term resistance line only for now.”
Key Quotes
“There it failed once more, though, and dropped back to the psychological 0.9000 region around which it should oscillate today. Above 0.9132 lies the 200 day moving average at 0.9159 which, together with the 2013-2014 resistance line at 0.9169, should cap, though.”
“Slips should find support between the current March lows at 0.8925 and 0.8891. While trading above here, upside pressure should be maintained.”
“As an aside it is possible that what we are seeing an inverse head and shoulders pattern which will offer a target of 0.9500, but as patterns do not outweigh downtrends, we look for a move to the long term resistance line only for now.”