AUD/USD Stabilized Below The Pivotal Resistance 0.8825
ICN.com | Oct 30, 2014 05:51AM ET
The pair dropped sharply yesterday after the Federal Reserve decided to boosted the dollar against major counterparts . Trading below 1.2660 forced us to activate our negative expectations yesterday, as we referred to the importance of turning negative. Today, stability below the referred to level forces us to think that the downside move could extend, especially with the negativity of both RSI and MACD.
From the downside, breaking 1.2580 could extend the downside move towards 1.2485, and breaking the latter extends bearishness towards 1.2405. From the upside, stability below 1.2660 is signficant to keep the downside move valid.
Get The News You Want
The pair is still moving to the downside and broke 1.6000 levels, easing the way for turning the intraday move to the downside targeting now the previously breached resistance of the Falling Wedge Pattern 1.5880. Consolidating below 1.6000 keeps the negative pressure valid and the extended targets reaches to 1.5800, while a break above 1.6000 achieves positive trading that target 1.6285 mainly.
The pair breached 109.00 and stabilizing above it is positive strengthening our positive expectations of extending the upside move, while breaching 109.30 and stabilizing above it favors extending bullishness targeting 110.0 and 110.75 levels. Trading above 108.50 is positive supporting the bullish expectations, while a break below 108.00 threatens to fail the suggested expectations.
The pair inched higher breaching 0.9560, as stabilizing above it favors extending the upside move targeting 0.9600 and 0.9650, while a break below 0.9510 threatens to fail the suggested expectations.
After yesterday's downside move, the pair moved back to the upside and traded above 38.2% correction at 1.1165 levels but below the key support of the upside move showing on graph above. MACD is negative and RSI is moving in a downside move. Linear Regression Indicators crossed over negatively but Linear Regression Indicator 55 didn't confirm its negativity.
Due to trading below the bullish support and above 38.2% correction, we prefer to remain neutral today waiting for new confirmation signals.
The pair stabilized below the pivotal resistance 0.8825 then traded again within the sideways range showing on graph, and the negative pressure could continue affected by the negativity of MACD that will push the pair towards the critical support 0.8690. We will move to the sidelines to monitor the pair at the support 0.8690 and resistance 0.8885, whereas breaking the uspport pushes the pair further to the downside, and breaching the resistance reactivates the positive scenario suggested in our latest reports.
The pair succeeded in breaking 0.7800 which strengthened our negative expectations that suggests selling the pair below 0.7860. Stabilizing below 0.7800 favors extending the downside move targeting 0.7730 and 0.7705, while a break above 0.7860 threatens to fail the suggested expectations.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.