AUD/USD resilient; back above 0.94

FXstreet.com (Chicago) - AUD/USD fell below the upward trendline originating last August 30th triggering 0.94 stops announced earlier. When market participants were ready for the 0.9380 stops, the pair bounced off 0.9395 lows.

Earlier comments by the Fed may explain global world equity retracements. Both the Aussie and kiwi fell on risk aversion after the plunge and indefinite tapering from the Fed. According to JP Morgan strategists, the AUD is set for “gentle depreciation” as short-term drivers are unsustainable.

AUD/USD Technical Levels

Price action reveals the violation of the upward trendline and extension of short-term bearish channel after reaching 0.9523, 3-month peaks. The pair trades at 0.9408 and oscillates between supports aligned at 0.9391 (September 15 highs), 0.9356 (September 11 highs) followed by 0.9317 (September 10th highs) and resistances aligned at 0.9431 (19th lows), 0.9478 (June 2nd highs) ahead of 0.9523 (September 20th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and is offered below the EMA20.

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