MarketPulse | Mar 14, 2014 06:35AM ET
AUD/USD had an eventful day yesterday. Prices rallied and broke 0.90 round figure following a stupendous Employment Change aided by bullish pressure spillover from RBNZ rate hike. However, a large portion of the gains were given up by the end of US session as prices pushed lower in line with other risk correlated assets following the decline in US stocks.
Hourly Chart
From a technical perspective, Stochastic indicator favours a rebound from 0.90 to 0.902 in the short-run with Stoch curve tapering flat and may start to reverse higher, crossing Signal line in the process. However, long-term bullishness is still suspect as we've just only seen a failed bullish cycle signal accompanying the 0.902 rebound. Nonetheless, it's not all doom and gloom, as the bullish sentiment of yesterday is indeed strong. Prices managed to brake 0.907 resistance during US opening hours when stocks were actually bullish initially. This shows that there is still hope and should broad risk sentiment recovers, we should not be surprised if AUD/USD recovers strongly.
Daily Chart
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