24 Oct 2013
Look to sell AUD/USD on pullbacks towards 0.9675 and 0.9703 - 2ndSkies
FXstreet.com (Barcelona) - After entering a populated offers zone at the 50% fibonacci retracement from its 2013 sharp fall, the AUD/USD saw a major debacle off its 0.9750 high, selling off consistently to stop the bleeding at 0.9600 round number.
By looking at 1-day worth of price action, traders can observe how Wednesday's daily candle has formed a huge bearish engulfing bar, one that according to Chris Capre, Founder at 2ndSkies Forex, "suggests likely topping and profit taking" based on "the false break above the key level at 9227 and subsequent break back below" Capre explains.
Capre adds: "Also the negative news out of China overpowered the better than expected #s out of Australia. Thus, likely a combination of heavy profit taking, plus new sellers in early London/Europe coming into the market on the bearish Chinese news."
Capre is inclined to sell the pair on intraday strength, noting "I am suspecting short term the pair will remain bearish, so will look to sell any corrective pullbacks towards the resistance zone between 9675 and 9703."
By looking at 1-day worth of price action, traders can observe how Wednesday's daily candle has formed a huge bearish engulfing bar, one that according to Chris Capre, Founder at 2ndSkies Forex, "suggests likely topping and profit taking" based on "the false break above the key level at 9227 and subsequent break back below" Capre explains.
Capre adds: "Also the negative news out of China overpowered the better than expected #s out of Australia. Thus, likely a combination of heavy profit taking, plus new sellers in early London/Europe coming into the market on the bearish Chinese news."
Capre is inclined to sell the pair on intraday strength, noting "I am suspecting short term the pair will remain bearish, so will look to sell any corrective pullbacks towards the resistance zone between 9675 and 9703."