Australian Dollar Remains In Sideways Band
Carol Harmer | Oct 22, 2014 08:01AM ET
I wish I could say something different about the Aussie, but I just can't because its just not changing and technical indicators are flat. We are trading in a sideways band currently. This could well be a continuation pattern after the 9230/8650 move or a base build. It is not clear at the moment as these patterns rarely are.
So the safest way to trade is to stay within the parameters of the recent range and stay in this range until either the top or bottom levels fail.
8743/35 support is going to be quite crucial. Short term, the market is a buy down here and we would then be looking at the market coming higher once more.
If 8690 breaks we abandon any longs as the pressure will return to the downside and we would be looking at this coming lower. We would see further weakness to the 8650/40 support band.
Resistance remains 8822/35. If we can climb above 8841, we can see another test of the 8900 area of resistance.
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