Australian Dollar Showing Room For Strength
Carol Harmer | Sep 23, 2013 02:51AM ET
The Aussie looked like it was going to trade lower after Friday's weaker close, but overnight we managed to climb back from .9346 and are currently above .9400. We have corrected nearly exactly back to the 50% short term fib level at 9438. Our short term charts still show room for strength, and the 240 are just touching the 25% stochastics point which could be bullish. It is only the daily charts that show bearish divergence and this is what we have to watch as the next few days unfold.
Let us see if we can break above this important Fib level at .9338 and stay above here. If we can we could look for another push higher and we would then see this move towards .9460 initially. This has held a few times, so we need to clear .9465 before buyers will come back into the market. With this done, there is scope for buyers to regain short term control and try for the recent highs of .9525/30.
Failure to break .9439 leaves us looking weaker and we could then see sellers drive us lower to .9346 then .9325/18.. Cover shorts in this area Re-sell below .9300 for .9285, then .9250.
Get The News You Want
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.