26 Mar 2014
AUD conquering 200 DMA – FXStreet
FXStreet (Guatemala) - Ivan Delgado, head of Asian editors at FXStreet, explained in an article that AUD/USD broke and closed above the 200-day MA.
Key Quotes:
“On the daily, the steep tenkan inclination, coupled with a rising kijun and an expanding bullish cloud, communicates that buying AUD on weakness is favoured near term”.
“The next upside target for longs is found circa 0.92, where the 50% fib retrac from the Oct-Jan decline crosses; should the expected cluster of offers be absorbed, a void area lies ahead, potentially leading to price acceleration towards 0.9280 – Nov 12, 2013 low”.
“On the downside, a steep ascending trendline coming from March 24 low, 0.9150 and 0.9120 are key support on setbacks”.
“The short term uptrend is developing in a non-volatile fashion, with impulsive bullish spikes counter-attacked by corrective moves, a common trait of a market in which longs are the dominant force. In such scenario, and barring any risk headlines (ie RBA talking down AUD again...), pullbacks are expected to be fairly shallow, as longs gain confidence to create strong clusters of demand zones on weakness”.
Key Quotes:
“On the daily, the steep tenkan inclination, coupled with a rising kijun and an expanding bullish cloud, communicates that buying AUD on weakness is favoured near term”.
“The next upside target for longs is found circa 0.92, where the 50% fib retrac from the Oct-Jan decline crosses; should the expected cluster of offers be absorbed, a void area lies ahead, potentially leading to price acceleration towards 0.9280 – Nov 12, 2013 low”.
“On the downside, a steep ascending trendline coming from March 24 low, 0.9150 and 0.9120 are key support on setbacks”.
“The short term uptrend is developing in a non-volatile fashion, with impulsive bullish spikes counter-attacked by corrective moves, a common trait of a market in which longs are the dominant force. In such scenario, and barring any risk headlines (ie RBA talking down AUD again...), pullbacks are expected to be fairly shallow, as longs gain confidence to create strong clusters of demand zones on weakness”.