11 Apr 2014
AUD/USD under pressure after 0.94 breakout
FXStreet (Bali) - AUD/USD is under pressure dragged lower by sales in AUD/JPY, with the sell-off taking the rate below the 0.94 support.
Despite the market remains on a firm bullish stance short term, the sharp declines in US stocks, combined with the end of the week, where profit taking is more prevalent, indicates that risks to visit lower layers of demand are increasing. A break below 0.9370 would end a 5-day run of higher lows.
According to Jim Langlands, Founder at FXCharts: "If 0.9400 is taken out then we should expect a run back towards 0.9385 and then possibly to 0.9350. Rising trend support is now at 0.9325, which needs to hold. If it were to give way, we should expect a deeper correction towards 0.9270."
Despite the market remains on a firm bullish stance short term, the sharp declines in US stocks, combined with the end of the week, where profit taking is more prevalent, indicates that risks to visit lower layers of demand are increasing. A break below 0.9370 would end a 5-day run of higher lows.
According to Jim Langlands, Founder at FXCharts: "If 0.9400 is taken out then we should expect a run back towards 0.9385 and then possibly to 0.9350. Rising trend support is now at 0.9325, which needs to hold. If it were to give way, we should expect a deeper correction towards 0.9270."