31 Jul 2013
AUD/USD violates support at 0.90714 – opening door to more downside
FXstreet.com (Barcelona) - The Aussie Dollar / US Dollar (AUDUSD) cross continues to violate key technical levels after Governor Stevens’ speech set the cross on a downward track on Tuesday.
AUD/USD showing no signs of life
With the Reserve Bank of Australia’s Governor Stevens’ rather accomodative language in his speech Tuesday, the burden of saving the desperate AUD/USD bulls fell on data from the US later in the day Tuesday. Unfortunately, although the US data came out worse-than-expected, the negative momentum from the Stevens speech was too much for the bulls to overcome and the AUD/USD closed below the key “correction support of 0.90714.
Technical outlook for AUD/USD
With today’s close below support, technicians are saying that AUD/USD needs to hold the 7/12 intraday low of 0.8997 in order to maintain some semblance of hope for desperate bulls. Below that level, no support comes into play until long-term horizontal line support at 0.8770. Short-term resistance now comes in at 0.9131 – the recently broken support level. Past that, 0.9295 (Friday’s high) would be the next resistance level.
AUD/USD showing no signs of life
With the Reserve Bank of Australia’s Governor Stevens’ rather accomodative language in his speech Tuesday, the burden of saving the desperate AUD/USD bulls fell on data from the US later in the day Tuesday. Unfortunately, although the US data came out worse-than-expected, the negative momentum from the Stevens speech was too much for the bulls to overcome and the AUD/USD closed below the key “correction support of 0.90714.
Technical outlook for AUD/USD
With today’s close below support, technicians are saying that AUD/USD needs to hold the 7/12 intraday low of 0.8997 in order to maintain some semblance of hope for desperate bulls. Below that level, no support comes into play until long-term horizontal line support at 0.8770. Short-term resistance now comes in at 0.9131 – the recently broken support level. Past that, 0.9295 (Friday’s high) would be the next resistance level.