AUD/USD: Expect Gains To 0.9374
Ian Copsey | May 07, 2014 12:23AM ET
BIAS: While 0.9319-24 supports we should see gains to 0.9374, at the very least.
Resistance: 0.9367-74 0.9390-99 0.9420-25 0.9440
Support: 0.9319-24 0.9302 0.9270-85 0.9252
MAIN ANALYSIS: Yesterday developed perfectly - saw gains to the triangle target just above the 0.9302-12 area followed by a correction and second rally which, so far, has stalled below 0.9374. Indeed, I am expecting a correction back to the 0.9319-24 area from where we should see a rally back towards the 0.9367-74 area. From this point take care and look for bearish reversal indications. The next decline may be corrective but do not rule out a resumption of the larger move lower. A break below 0.9302 would heighten this risk.
COUNTER ANALYSIS: A break back above 0.9380 would risk a test of the 0.9390-99 area. Slightly deeper is possible to 0.9420-25, but by this point I feel it will be deep enough as this should not see a close approach to the 0.9460 high.
MEDIUM TERM ANALYSIS:
7th May: So far the recovery from 0.9201 has been straightforward but we should begin to consider watching for bearish reversal indications as we approach the 0.9374 high and at most the 0.9390-99 area. It should soon be time for the next leg lower.
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