6 Sep 2013
AUD/USD in short-term wave “b” higher of “abc” correction lower say Elliott Wavers
FXstreet.com (Barcelona) - The AUD/USD short-term rip higher took a breather Thursday on the back of weak Aussie data and strong US data.
An Aussie miss and several US hits were reason enough for bulls to take profits
Aussie Trade Balance data came out worse-than-expected Thursday which gave AUD/USD traders an excuse to let it pull back a bit after a torrid recent run. Then, later in the session, traders got a flurry of US data (that netted out convincingly bullish) that helped the downside corrective action continue late into the session.
Just before Thursday’s close, however, some AUD/USD buying came in and the cross seems to have been grinding out a correction of the correction since.
The bigger question for analysts and traders is whether the upside momentum can continue and push the AUD/USD through key resistance at 0.9264 and reach new short-term heights. It will require a continuation of bullish thinking by the RBA and the data to back it up. Per a special piece published here yesterday, there is plenty of doubt about the rally having legs.
Technical outlook for AUD/USD
Elliott Wave technicians are saying that the AUD/USD should continue to work its way higher until the macro correction resistance / Fibonacci retracement resistance at 0.9264 is reached. However, their short-term wave “b” of “abc” upside resistance is 0.9139. After that level is tested / held, wave “c” lower of the “abc” correction lower should bottom out near 0.9065.
An Aussie miss and several US hits were reason enough for bulls to take profits
Aussie Trade Balance data came out worse-than-expected Thursday which gave AUD/USD traders an excuse to let it pull back a bit after a torrid recent run. Then, later in the session, traders got a flurry of US data (that netted out convincingly bullish) that helped the downside corrective action continue late into the session.
Just before Thursday’s close, however, some AUD/USD buying came in and the cross seems to have been grinding out a correction of the correction since.
The bigger question for analysts and traders is whether the upside momentum can continue and push the AUD/USD through key resistance at 0.9264 and reach new short-term heights. It will require a continuation of bullish thinking by the RBA and the data to back it up. Per a special piece published here yesterday, there is plenty of doubt about the rally having legs.
Technical outlook for AUD/USD
Elliott Wave technicians are saying that the AUD/USD should continue to work its way higher until the macro correction resistance / Fibonacci retracement resistance at 0.9264 is reached. However, their short-term wave “b” of “abc” upside resistance is 0.9139. After that level is tested / held, wave “c” lower of the “abc” correction lower should bottom out near 0.9065.