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27 Feb 2013
Forex: AUD/USD sees 1.02 protection; 20-EMA capping the upside
The AUD/USD printed a fresh multi-month low on Tuesday, falling as low as 1.02 before buyers emerged to drive the spot rate back towards a retest of 1.0230 broken-support-turned-resistance.
The break lower, which came after upbeat US indicators, failed to have a clean close below 1.0225/30 contention area, signaling that buyers continue to challenge every dip, despite still overall selling control.
In the last few hours, the bounce reached 1.0230 but sellers are stepping in again, trying to capitalize on the bearish momentum to lower levels, presently at 1.0225. On the hourly chart, the 20-ema has been capping the upside since the European open.
As Valeria Bednark, chief analyst at FXstreet.com, notes: "The hourly chart maintains the bearish tone, with lower highs and lower lows, and price capped by the 20 SMA. In the 4 hours, technicals are also bearish, with 1.0160 as possible target for today."
The break lower, which came after upbeat US indicators, failed to have a clean close below 1.0225/30 contention area, signaling that buyers continue to challenge every dip, despite still overall selling control.
In the last few hours, the bounce reached 1.0230 but sellers are stepping in again, trying to capitalize on the bearish momentum to lower levels, presently at 1.0225. On the hourly chart, the 20-ema has been capping the upside since the European open.
As Valeria Bednark, chief analyst at FXstreet.com, notes: "The hourly chart maintains the bearish tone, with lower highs and lower lows, and price capped by the 20 SMA. In the 4 hours, technicals are also bearish, with 1.0160 as possible target for today."