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28 Aug 2013
AUD/USD dropping after ABC upside correction plays out on 10-minute chart
FXstreet.com (Barcelona) - The AUD/USD just completed a short-term upside correction at 0.8982 and is headed lower – perhaps for a re-test of the 0.8938 support levels earmarked by technicians.
Better US data couldn’t hold the AUD/USD down for more than 90 minutes Tuesday
The S&P Case Schiller Home Price Index, Consumer Confidence numbers and the Richmond Fed Manufacturing Index all exceeded consensus estimates – which should have been Dollar-bullish (AUD/USD-bearish). However, the Dollar quickly caved and the AUD/USD rallied into the end of the US session. Since just before the US close, however, the AUD/USD has been back on the decline – possibly reflecting the flight to safety trade being “on” at the expense of risk assets like the Aussie Dollar.
Wednesday will bring AUD/USD traders info on Australian Construction Work Done and US Pending Home Sales – neither of which are hugely important / market-moving data points.
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 0.8982 as being a point on the chart to watch as well. Short-term support comes in at 0.8938 and is followed by a Fibonacci projection at 0.8827.
Better US data couldn’t hold the AUD/USD down for more than 90 minutes Tuesday
The S&P Case Schiller Home Price Index, Consumer Confidence numbers and the Richmond Fed Manufacturing Index all exceeded consensus estimates – which should have been Dollar-bullish (AUD/USD-bearish). However, the Dollar quickly caved and the AUD/USD rallied into the end of the US session. Since just before the US close, however, the AUD/USD has been back on the decline – possibly reflecting the flight to safety trade being “on” at the expense of risk assets like the Aussie Dollar.
Wednesday will bring AUD/USD traders info on Australian Construction Work Done and US Pending Home Sales – neither of which are hugely important / market-moving data points.
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 0.8982 as being a point on the chart to watch as well. Short-term support comes in at 0.8938 and is followed by a Fibonacci projection at 0.8827.