23 May 2014
AUD/USD sidelined around 0.9240
FXStreet (Edinburgh) - The Aussie dollar is looking to consolidate the overnight advance, with the AUD/USD navigating around 0.9240/35 so far.
AUD/USD recovers from recent drop
Spot is partially reclaiming the ground lost in recent sessions and bouncing off multi-week lows, although the move remains within the broader correction from ytd tops at 0.9460 (April). There are no data in Oz today, however traders would keep their focus on the recent releases in the Chinese economy. “In the near term, AUD/USD has broken below its 5 month uptrend support at 0.9325 placing it in a consolidation phase. We see a likely near term range of 0.9180 / 0.9320 while this consolidation plays out. On the topside we need to see a close above 0.9410 to confirm the MT bullish directional bias. We remain biased to further upside over a 2-4 week time frame and note that a strong close into the May month end would have bullish LT implications”, observed the research team at Westpac.
AUD/USD key levels
The pair is now advancing 0.17% at 0.9238 with the next resistance at 0.9274 (high May 22) followed by 0.9280 (50-d MA) and finally 0.9336 (high May 20). On the flip side, a breakdown of 0.9208 (low May 21) would open the door to 0.9172 (200-d MA) and then 0.9155 (low Mar.26).
AUD/USD recovers from recent drop
Spot is partially reclaiming the ground lost in recent sessions and bouncing off multi-week lows, although the move remains within the broader correction from ytd tops at 0.9460 (April). There are no data in Oz today, however traders would keep their focus on the recent releases in the Chinese economy. “In the near term, AUD/USD has broken below its 5 month uptrend support at 0.9325 placing it in a consolidation phase. We see a likely near term range of 0.9180 / 0.9320 while this consolidation plays out. On the topside we need to see a close above 0.9410 to confirm the MT bullish directional bias. We remain biased to further upside over a 2-4 week time frame and note that a strong close into the May month end would have bullish LT implications”, observed the research team at Westpac.
AUD/USD key levels
The pair is now advancing 0.17% at 0.9238 with the next resistance at 0.9274 (high May 22) followed by 0.9280 (50-d MA) and finally 0.9336 (high May 20). On the flip side, a breakdown of 0.9208 (low May 21) would open the door to 0.9172 (200-d MA) and then 0.9155 (low Mar.26).