Forex: Sellers push AUD/USD over the edge; next support at 1.0440
FXstreet.com (Barcelona) - The AUDUSD continues to lose value across the board this Wednesday, currently at 1.0470, session lows, following topside failure of 1.0500 as QE3 hopes get delayed on recent upbeat US retail sales. Australia equities have also turned negative, with the ASX 200 seeking 4240 after fake break of 4270.
The pair looks weak to further falls in the next sessions ahead, with indications being quite notorious that sellers have taken short-term control over underlying buying trend. The bearish engulfing continuation bar on the last h1 candle, which first attempted a mild recovery, confirms that.
Hard to imagine institutional dip buyers would be too keen to reinstate positions until next area of demand around 1.0440 gets hit (38.2% fib / prior swing low support). Just below mentioned level, 1.0430 (ascending trendline coming from yearly low) comes as next area of strong support.
On the upside, Aussie longs should regain 1.0500 thru a H1 close for sentiment to start shifting back up again. "Recent 1.0615 highs were in the sell zone where a top was likely" the team of FX experts at IFR Markets reports.
Further technical clues on the possible direction of the AUDUSD short term talking can be found on EURAUD, with a daily close above 1.18 adding to upside momentum, carry unwind, ergo, putting extra pressure on AUDUSD.
The pair looks weak to further falls in the next sessions ahead, with indications being quite notorious that sellers have taken short-term control over underlying buying trend. The bearish engulfing continuation bar on the last h1 candle, which first attempted a mild recovery, confirms that.
Hard to imagine institutional dip buyers would be too keen to reinstate positions until next area of demand around 1.0440 gets hit (38.2% fib / prior swing low support). Just below mentioned level, 1.0430 (ascending trendline coming from yearly low) comes as next area of strong support.
On the upside, Aussie longs should regain 1.0500 thru a H1 close for sentiment to start shifting back up again. "Recent 1.0615 highs were in the sell zone where a top was likely" the team of FX experts at IFR Markets reports.
Further technical clues on the possible direction of the AUDUSD short term talking can be found on EURAUD, with a daily close above 1.18 adding to upside momentum, carry unwind, ergo, putting extra pressure on AUDUSD.
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