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25 Nov 2013
AUD/USD chart ugly after break of 0.9190 support. Test of August lows coming?
FXstreet.com (Barcelona) - The AUD/USD broke and closed below technical “correction support” of 0.9194 on Friday. This failure of the bulls to stand there ground there could mean an eventual test of the August lows at 0.8847.
AUD/USD traders waiting for US data later in the session for guidance
There is no Aussie data due out during the Monday session so traders will have to rely on the technicals and last week’s negative momentum as short-term guides until the US session arrives. During the US trading hours, US Pending Home sales and the Dallas Fed Manufacturing Index will be released – giving AUD/USD traders something on which they can trade.
Technical outlook for AUD/USD
Technicians note that the AUD/USD has broken below very important technical “correction support” at 0.9190. That level represented the 100% Fibonacci price projection for what could have been an “abc” correction to the downside. Now that “correction support” has been broken, much more downside potential has been opened up in the short-term. The next projected support comes in at the Fibonacci-generated 0.906225 and 0.8983. The ultimate target, though, may be all the way down at the August low of 0.8847. Resistance for the cross starts at the 11/12 close at 0.9301 and is backed up by last Tuesday and Wednesday’s peak at 0.9446.
AUD/USD traders waiting for US data later in the session for guidance
There is no Aussie data due out during the Monday session so traders will have to rely on the technicals and last week’s negative momentum as short-term guides until the US session arrives. During the US trading hours, US Pending Home sales and the Dallas Fed Manufacturing Index will be released – giving AUD/USD traders something on which they can trade.
Technical outlook for AUD/USD
Technicians note that the AUD/USD has broken below very important technical “correction support” at 0.9190. That level represented the 100% Fibonacci price projection for what could have been an “abc” correction to the downside. Now that “correction support” has been broken, much more downside potential has been opened up in the short-term. The next projected support comes in at the Fibonacci-generated 0.906225 and 0.8983. The ultimate target, though, may be all the way down at the August low of 0.8847. Resistance for the cross starts at the 11/12 close at 0.9301 and is backed up by last Tuesday and Wednesday’s peak at 0.9446.