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19 May 2014
AUD/USD testing lows around 0.9350
FXStreet (Edinburgh) - The Aussie dollar is trading on the back foot at the beginning of the week, with the AUD/USD challenging session lows in the mid-0.9300s.
AUD/USD consolidating after recent peaks
The pair is looking to consolidate last week’s rejection from the 0.9400 area, which bulls still cannot convincingly break. In the meantime, market participants will closely follow tomorrow’s RBA minutes while keeping an eye on the iron ore, as price is threatening the critical support at 100/tn. “The $0.9400 are remains the key barrier to the upside, but the enthusiasm for the downside has waned. The Australian dollar may be tracing out an A-B-C correction after the big advance that carried it from around $0.8700 at the end of January to almost $0.9500 in the first half of April. If this is view is accurate, the Australian dollar should begin to trade more heavily in the day ahead. A break of the 20-day moving average near $0.9320 would offer confirmation”, noted analysts at BBH.
AUD/USD key levels
The pair is now losing 0.16% at 0.9349 with the next support at 0.9227 (low Apr.29) ahead of 0.9225 (low Apr.4) and finally 0.9184 (50-d MA). On the upside, a break above 0.9427 (high Apr.11) would aim for 0.9461 (high Apr.10) and then 0.9500 (psychological level).
AUD/USD consolidating after recent peaks
The pair is looking to consolidate last week’s rejection from the 0.9400 area, which bulls still cannot convincingly break. In the meantime, market participants will closely follow tomorrow’s RBA minutes while keeping an eye on the iron ore, as price is threatening the critical support at 100/tn. “The $0.9400 are remains the key barrier to the upside, but the enthusiasm for the downside has waned. The Australian dollar may be tracing out an A-B-C correction after the big advance that carried it from around $0.8700 at the end of January to almost $0.9500 in the first half of April. If this is view is accurate, the Australian dollar should begin to trade more heavily in the day ahead. A break of the 20-day moving average near $0.9320 would offer confirmation”, noted analysts at BBH.
AUD/USD key levels
The pair is now losing 0.16% at 0.9349 with the next support at 0.9227 (low Apr.29) ahead of 0.9225 (low Apr.4) and finally 0.9184 (50-d MA). On the upside, a break above 0.9427 (high Apr.11) would aim for 0.9461 (high Apr.10) and then 0.9500 (psychological level).