11 Apr 2014
AUD/USD hourly chart analysis - FXStreet
FXStreet (Guatemala) - Ivan Delgado, Head of Asian Editors, explained his hourly chart analysis today for the AUD/USD that comes with a strong uptrend.
Key Quotes:
“First, we can notice that AUD/USD lost some momentum on Thursday, with US failing to make higher highs in what looks like an overstretched rally in need to some short term technical correction”.
“Do we have evidence of that possibly happening? I would say there is some tentative initial clues that may suggest exhaustion, so let's look into it”.
“To start with, one can notice that the latest bounce off 0.94 (hourly kijun) failed to regain the tenkan line, with sellers stepping in to for a potential weak cross of the two indicators. If confirmed, and upon a breakout of 0.94, long players may accelerate profit taking, which could lead to a retest of the span A (cloud top), which comes around 0.9370 in Asia, gradually rising as we move into Europe”.
“That said, even on a setback, the thickness of the hourly cloud still suggests that clearing the area will prove a tough mission to accomplish, which strengthens the notion of continuous strong interest to be dip buyers anywhere between 0.9370 and 0.9340/50”.
“In the scenario of a deeper pullback through 0.9340/50, the context is still of a firm uptrend, thus counter-trend moves should be treated with caution and only expecting limited returns before longs continue to overwhelm attempts to get a cheaper AUD”.
“On the flip side, the inability to break below 0.94 will probably see focus shifted back to 0.9430, which if regained, could set us the stage for a retest of trend highs at 0.9460 ahead of next target at the round number 0.95”.
Key Quotes:
“First, we can notice that AUD/USD lost some momentum on Thursday, with US failing to make higher highs in what looks like an overstretched rally in need to some short term technical correction”.
“Do we have evidence of that possibly happening? I would say there is some tentative initial clues that may suggest exhaustion, so let's look into it”.
“To start with, one can notice that the latest bounce off 0.94 (hourly kijun) failed to regain the tenkan line, with sellers stepping in to for a potential weak cross of the two indicators. If confirmed, and upon a breakout of 0.94, long players may accelerate profit taking, which could lead to a retest of the span A (cloud top), which comes around 0.9370 in Asia, gradually rising as we move into Europe”.
“That said, even on a setback, the thickness of the hourly cloud still suggests that clearing the area will prove a tough mission to accomplish, which strengthens the notion of continuous strong interest to be dip buyers anywhere between 0.9370 and 0.9340/50”.
“In the scenario of a deeper pullback through 0.9340/50, the context is still of a firm uptrend, thus counter-trend moves should be treated with caution and only expecting limited returns before longs continue to overwhelm attempts to get a cheaper AUD”.
“On the flip side, the inability to break below 0.94 will probably see focus shifted back to 0.9430, which if regained, could set us the stage for a retest of trend highs at 0.9460 ahead of next target at the round number 0.95”.