23 Jul 2013
AUD/USD grinding higher towards key resistance of 0.9297
FXstreet.com (Barcelona) - After bottoming out at 9:15am GMT at 0.9185, the AUD/USD spent most of the US session working its way up to a peak of 0.9269 at 14:10 GMT – the movement being fed by some bearish sentiment on the greenback due to fundamental, economic and technical factors.
AUD/USD reacting to Detroit, possible investigations investment banks and weak housing data
This weekend, news of the City of Detroit’s bankruptcy and a possible investigation into major US investment banks wobbled the US Dollar. Weaker-than-expected housing data early morning in the U.S. sent the greenback to the canvas. The US Dollar index ended up closing below key short-term support as a result on Monday. Only a similarly weak Aussie Dollar technical situation is keeping a lid on the AUD/USD cross. With a slow economic news flow expected for Australia and the U.S. on Tuesday, the movements in the AUD/USD will likely be driven by happenings in the equities and fixed income markets as well as by AUD/USD’s own technical situation.
AUD/USD key technical levels
Despite Monday’s rally, the AUD/USD appears to be going through a typical bear market bounce / consolidation according to technicians. Short-term support for AUD/USD is Thursday’s pivot low of 0.9137 followed by the 7/12 closing low of 0.9048. First resistance for AUD/USD comes in at the “correction resistance” created by the Fibonacci projection for what may be the “c” wave of an “abc” upside correction at 0.9297. Above that, resistance comes in at the 6/26 intraday high of 0.93436.
AUD/USD reacting to Detroit, possible investigations investment banks and weak housing data
This weekend, news of the City of Detroit’s bankruptcy and a possible investigation into major US investment banks wobbled the US Dollar. Weaker-than-expected housing data early morning in the U.S. sent the greenback to the canvas. The US Dollar index ended up closing below key short-term support as a result on Monday. Only a similarly weak Aussie Dollar technical situation is keeping a lid on the AUD/USD cross. With a slow economic news flow expected for Australia and the U.S. on Tuesday, the movements in the AUD/USD will likely be driven by happenings in the equities and fixed income markets as well as by AUD/USD’s own technical situation.
AUD/USD key technical levels
Despite Monday’s rally, the AUD/USD appears to be going through a typical bear market bounce / consolidation according to technicians. Short-term support for AUD/USD is Thursday’s pivot low of 0.9137 followed by the 7/12 closing low of 0.9048. First resistance for AUD/USD comes in at the “correction resistance” created by the Fibonacci projection for what may be the “c” wave of an “abc” upside correction at 0.9297. Above that, resistance comes in at the 6/26 intraday high of 0.93436.