Forex Flash: AUD/USD looking to cap rally – Commerzbank
Forex pairs in this Article »
AUD/USD
FXstreet.com (Barcelona) - Karen Jones, head of Technical Analysis at Commerzbank has taken a look at AUDUSD from a purely technical perspective.
Jones begins by noting that there has been no real change in the pair overnight with the market continuing to slowly inch higher and set to probe resistance at 1.0523/68. She notes that this is the 78.6% Fibonacci retracement of the last few months decline and the 2011-12 resistance line. She is continuing to look for spot to have its upside capped at this level.
She believes that this should provoke failure and a slide back to 1.0369, the short term up trend and failure at the November 1.0288 low is needed to trigger further losses. A move above 1.0568 will cancel out her outlook and allow for gains to 1.0624 and then 1.0857, the 2012 high. Jones is currently short at 1.0500 and looking to add to her position at 1.0550 with a stop at 1.0580 and a target of 1.0300.
Jones begins by noting that there has been no real change in the pair overnight with the market continuing to slowly inch higher and set to probe resistance at 1.0523/68. She notes that this is the 78.6% Fibonacci retracement of the last few months decline and the 2011-12 resistance line. She is continuing to look for spot to have its upside capped at this level.
She believes that this should provoke failure and a slide back to 1.0369, the short term up trend and failure at the November 1.0288 low is needed to trigger further losses. A move above 1.0568 will cancel out her outlook and allow for gains to 1.0624 and then 1.0857, the 2012 high. Jones is currently short at 1.0500 and looking to add to her position at 1.0550 with a stop at 1.0580 and a target of 1.0300.
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