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11 Mar 2014
AUD/USD is trying to reverse losses
FXStreet (Moscow) - AUD/USD moved higher from the opening level at 0.9016 and reached the current Asian high at 0.9037.
Aussie is on thin ice
Looks like reverse head-and shoulder pattern on daily and weekly charts did not materialize as the attempt to break above the neckline at 0.9060 failed. The «dark cloud cover» on the daily chart underlines the negative sentiments towards the Aussie. So much for the long term technicals, now lets have a look at the fundamental factors. On one hand, Chinese economy is in retreat, which is a bad news for the Australian economy. On the other hand, the commodity markets are on the upside quest due to geopolitical concerns, which is quite positive for the country’s mining sector. These counterbalancing forces may lead to a period of AUD/USD consolidation, but finally something will tip the balance. The business conditions index lowered to 7 in February from 9 in January, though the long-term trend is still positive. On the intraday basis, the key levels are: 0.9040 followed but medium offers at 0.9050 on the upside and 0.9010 followed 0.9000 with demand on approach.
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.9033, with support below at 0.9000, 0.8979 and 0.8946, with resistance above at 0.9054, 0.9087 and 0.9108. Hourly Moving Averages are mixed, with the 200SMA at 0.8987 and the daily 20EMA at 0.8985. Hourly RSI is neutral at 49.
Aussie is on thin ice
Looks like reverse head-and shoulder pattern on daily and weekly charts did not materialize as the attempt to break above the neckline at 0.9060 failed. The «dark cloud cover» on the daily chart underlines the negative sentiments towards the Aussie. So much for the long term technicals, now lets have a look at the fundamental factors. On one hand, Chinese economy is in retreat, which is a bad news for the Australian economy. On the other hand, the commodity markets are on the upside quest due to geopolitical concerns, which is quite positive for the country’s mining sector. These counterbalancing forces may lead to a period of AUD/USD consolidation, but finally something will tip the balance. The business conditions index lowered to 7 in February from 9 in January, though the long-term trend is still positive. On the intraday basis, the key levels are: 0.9040 followed but medium offers at 0.9050 on the upside and 0.9010 followed 0.9000 with demand on approach.
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.9033, with support below at 0.9000, 0.8979 and 0.8946, with resistance above at 0.9054, 0.9087 and 0.9108. Hourly Moving Averages are mixed, with the 200SMA at 0.8987 and the daily 20EMA at 0.8985. Hourly RSI is neutral at 49.