13 Feb 2014
AUD/USD: Sellers back in mass, bounceless fall to 0.8935...
FXStreet (Bali) - The 80+ pips sell-off in the AUD/USD has seen no buyers challenging the decline, an action that should reinforce the notion that the upward move we have seen since the bottom found last Jan 24 has been merely short-covering inspired rather than a potential structural change in trend.
The heavy pressure with absolute no bounce on the rest of 0.8935/40 support line suggests that the selling force is now the dominant short term, as the worst jobless rate in Australia since 2003 has clearly taken its toll in AUD sentiment.
There is talk in the market that many committed sellers have returned back establishing shorts in the AUD as the view of a top being found takes hold. While buyers should be found around the 0.8925/35, buyers look to be on the retreat, thus a bearish resumption post a brief consolidation in prices may follow. If that is the case, 0.89 should be next target, level where the daily tenkan is met.
The heavy pressure with absolute no bounce on the rest of 0.8935/40 support line suggests that the selling force is now the dominant short term, as the worst jobless rate in Australia since 2003 has clearly taken its toll in AUD sentiment.
There is talk in the market that many committed sellers have returned back establishing shorts in the AUD as the view of a top being found takes hold. While buyers should be found around the 0.8925/35, buyers look to be on the retreat, thus a bearish resumption post a brief consolidation in prices may follow. If that is the case, 0.89 should be next target, level where the daily tenkan is met.