22 Nov 2013
AUD/USD falling at almost a perfect 45 degree angle; key support 0.9190
FXstreet.com (Barcelona) - The AUD/USD is feeling the effects of strong US data combined with weak Chinese economic data Wednesday and Thursday. Will technical support and an oversold condition save the bulls?
AUD/USD traders will have to defer to technicals and sentiment Friday
With a lack of data due out of Australia and the US Friday, traders will need to be aware of technical support and oversold technical indicators that are now or will be soon reaching oversold levels.
Technical outlook for AUD/USD
Technicians note that the AUD/USD has very important technical “correction support” at 0.9190. That level represents the 100% Fibonacci price projection for what may be an “abc” correction to the downside. That level corresponds with the 61.8% retracement of the August to October five-wave rally that took place. If the AUD/USD is to have any hope for a renewed rally, the bulls have to hold the AUD/USD above 0.9190. Resistance for the cross starts at the Tuesday / Wednesday peak at 0.9446 and is backed up by the November 6th peak at 0.9546.
AUD/USD traders will have to defer to technicals and sentiment Friday
With a lack of data due out of Australia and the US Friday, traders will need to be aware of technical support and oversold technical indicators that are now or will be soon reaching oversold levels.
Technical outlook for AUD/USD
Technicians note that the AUD/USD has very important technical “correction support” at 0.9190. That level represents the 100% Fibonacci price projection for what may be an “abc” correction to the downside. That level corresponds with the 61.8% retracement of the August to October five-wave rally that took place. If the AUD/USD is to have any hope for a renewed rally, the bulls have to hold the AUD/USD above 0.9190. Resistance for the cross starts at the Tuesday / Wednesday peak at 0.9446 and is backed up by the November 6th peak at 0.9546.