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29 Aug 2013
AUD/USD opens lower in Thursday session after relief rally Wednesday
FXstreet.com (Barcelona) - The AUD/USD rallied hard on news of no unilateral military action by the U.S. against Syria but topped out at 16:00 GMT and has waffled sideways since.
The news of no unilateral US attack forced the safety trade crowd to take profits
For some reason, the AUD/USD has a tendency to become a crowded trade in one direction or the other – with the most recent instance being an over-crowded, over-sold condition in AUD/USD on Syria concerns. When such a condition arises, any hint of a reversal of the news flow usually leads to a sharp rally. That appears to be just what happened Wednesday.
Thursday will surely bring more Syria developments as well as Aussie data (new home sales and private capital expenditures), U.S. data (US GDP, Personal Consumption Expenditures and weekly Jobless Claims) and a speech from the U.S. Fed’s Bullard.
Technical outlook for AUD/USD
The AUD/USD cross set a new “correction resistance” peak at around 0.9067 Monday. That, if the Elliott Wave technicians are correct, should be it for the AUD/USD’s upside in the very short-term. Those same technicians identify a shorter-term peak at 0.8996 as being a point on the chart to watch as well. Short-term support comes in at 0.8874 and is followed by a Fibonacci projection at 0.8857.
The news of no unilateral US attack forced the safety trade crowd to take profits
For some reason, the AUD/USD has a tendency to become a crowded trade in one direction or the other – with the most recent instance being an over-crowded, over-sold condition in AUD/USD on Syria concerns. When such a condition arises, any hint of a reversal of the news flow usually leads to a sharp rally. That appears to be just what happened Wednesday.
Thursday will surely bring more Syria developments as well as Aussie data (new home sales and private capital expenditures), U.S. data (US GDP, Personal Consumption Expenditures and weekly Jobless Claims) and a speech from the U.S. Fed’s Bullard.
Technical outlook for AUD/USD
The AUD/USD cross set a new “correction resistance” peak at around 0.9067 Monday. That, if the Elliott Wave technicians are correct, should be it for the AUD/USD’s upside in the very short-term. Those same technicians identify a shorter-term peak at 0.8996 as being a point on the chart to watch as well. Short-term support comes in at 0.8874 and is followed by a Fibonacci projection at 0.8857.