14 Mar 2014
Flash: AUD/USD rebounds sighted 0.9043/45 - FXStreet
FXStreet (Guatemala) - Ivan Delgado who is the Head of Asian Editors at FXStreet explained on the back of a strong Aus jobs number on Thursday, AUD/USD saw steady flows allowing the rate to break several layers of supply at 0.9045/50 followed by 0.9070/80 yet 0.91 – just above 38.2% fib retrac from 0.9740-0.9640 fall – disallowed further progress, as risk-off headlines kicked in/also rumours that China banks are to cut loans to struggling industries by up to 20%.
"From there, longs were quite easily outweighed by sellers, with price returning towards key 0.9010/0.90 support".
“On the daily, the market conditions remain range-bound, with 0.8890/89 – 0.9130/50 the extremes identified. Last Wednesday's rebound off the 50/55dma led to prices clearing the kijun and tenkan, now both indicators having turned as dynamic support circa 0.9010, which adds further weigh to the level for today”.
“AUD/USD remains a difficult market to trade on lack of trend definition, however, buyers and sellers are still exploiting the extremes of the range, with some decent follow through seen this week, especially bottom up. Since range trading conditions are not easy to trade, be extra careful on selecting the right areas to exploit”.
“Today, the threat of further risk-off headlines combined with a sense of a market still interested in buying AUD dips makes for a problematic equation. The perception is, as said, that the market still likes to buy deep dips, proof of that being the AUD holding reasonably well despite the selling in Wall Street and flight to safety”.
“However, traders will have to keep monitoring the Ukraine crisis and China credit/growth woes, with risks increasing that any potential bullish technical-led setup in the Aussie may be distorted by headlines”.
“Levels that will attract the most attention for today are quite familiar for AUD traders, with 0.9010/0.90 still well protected, which would probably see buyers aiming for a rebound to 0.9043/45 – next resistance – ahead of a potential retest of 0.9070/80, with only a clean break above allowing 0.91 and 0.9125/30 next. On the downside, should sellers regain 0.9010/0.90, a threat of 0.8975 and 0.8923/25 is possible”.
"From there, longs were quite easily outweighed by sellers, with price returning towards key 0.9010/0.90 support".
“On the daily, the market conditions remain range-bound, with 0.8890/89 – 0.9130/50 the extremes identified. Last Wednesday's rebound off the 50/55dma led to prices clearing the kijun and tenkan, now both indicators having turned as dynamic support circa 0.9010, which adds further weigh to the level for today”.
“AUD/USD remains a difficult market to trade on lack of trend definition, however, buyers and sellers are still exploiting the extremes of the range, with some decent follow through seen this week, especially bottom up. Since range trading conditions are not easy to trade, be extra careful on selecting the right areas to exploit”.
“Today, the threat of further risk-off headlines combined with a sense of a market still interested in buying AUD dips makes for a problematic equation. The perception is, as said, that the market still likes to buy deep dips, proof of that being the AUD holding reasonably well despite the selling in Wall Street and flight to safety”.
“However, traders will have to keep monitoring the Ukraine crisis and China credit/growth woes, with risks increasing that any potential bullish technical-led setup in the Aussie may be distorted by headlines”.
“Levels that will attract the most attention for today are quite familiar for AUD traders, with 0.9010/0.90 still well protected, which would probably see buyers aiming for a rebound to 0.9043/45 – next resistance – ahead of a potential retest of 0.9070/80, with only a clean break above allowing 0.91 and 0.9125/30 next. On the downside, should sellers regain 0.9010/0.90, a threat of 0.8975 and 0.8923/25 is possible”.