6 Mar 2014
Flash: AUD bulls are taking charge - FXStreet
FXStreet (Guatemala) - Ivan Delgado is the Head of Asian Editors and he wrote in an article that the AUD has re-taken the daily tenkan sen after a third straight day of higher highs and higher lows, with all closes near the highs of the day, evidence that bulls are the dominant force so far this week.
Key Quotes:
"Several setbacks on Wed were quickly bought up, further reinforcing the notion of a short term long bias, although it may not be long-lasting as price approaches strong resistance 0.9050/0.9080 and the overall tendency of the market has been to play the 0.89-0.9050/80 range until a new catalyst, so little leeway to exploit larger upside moves ahead of the US NFP, which could be the trigger to break into higher levels on a big miss".
"Price continues to trade inside the cloud ever since early February, although a new directional bias is expected relatively soon as the cloud thins out, which would allow more room for prices to fluctuate".
"Yesterday, I outlined that the AUD is starting to build some formidable support in the form of an ascending kijun line, with the latest failed retracement ahead of the indicator a communication of the higher participation of buyers".
"To sum up, expect a long bias intraday, although the upside should be limited by 0.9050/80 even on a strong Aus retail sales, while setbacks should be shallow as price faces immediate support circa 0.8960/65 (daily tenkan + 20-d ema) ahead of 0.8934/37 intraday support, unlikely to be broken unless Aus retail sales shows a major disappointment, which in such occurrence, price may see a sharper slide, but hard to think below 0.89".
Key Quotes:
"Several setbacks on Wed were quickly bought up, further reinforcing the notion of a short term long bias, although it may not be long-lasting as price approaches strong resistance 0.9050/0.9080 and the overall tendency of the market has been to play the 0.89-0.9050/80 range until a new catalyst, so little leeway to exploit larger upside moves ahead of the US NFP, which could be the trigger to break into higher levels on a big miss".
"Price continues to trade inside the cloud ever since early February, although a new directional bias is expected relatively soon as the cloud thins out, which would allow more room for prices to fluctuate".
"Yesterday, I outlined that the AUD is starting to build some formidable support in the form of an ascending kijun line, with the latest failed retracement ahead of the indicator a communication of the higher participation of buyers".
"To sum up, expect a long bias intraday, although the upside should be limited by 0.9050/80 even on a strong Aus retail sales, while setbacks should be shallow as price faces immediate support circa 0.8960/65 (daily tenkan + 20-d ema) ahead of 0.8934/37 intraday support, unlikely to be broken unless Aus retail sales shows a major disappointment, which in such occurrence, price may see a sharper slide, but hard to think below 0.89".