Anna Coulling | Dec 08, 2015 06:44AM ET
If we begin with the 6A and the AUD/USD, I suggested last week that the current rally for the pair was starting to run out of steam, with both the technical and fundamental picture beginning to weigh on the recent rally. Indeed with Governor Stevens continuing to signal his desire for further Aussie weakness, the move higher was always likely to have limited momentum, and it was the strong resistance in the 0.7360 area (denoted by the blue dotted line) that proved to be a bridge too far, with Friday’s long legged doji candle first signalling a pause point, which has since been confirmed with a solid move lower. This level is extremely strong and one that was tested repeatedly in August, and again in October, but duly holding firm on both occasions. Last week’s failure has reinforced this level still further, with the pair closing with a wide spread down candle in yesterday’s trading session, and continuing the move lower in early trading today to test the 0.7200 region at the time of writing. Below is the 0.7170 region where a platform of potential support awaits on the accumulation and distribution indicator, but should this be breached, then we can expect to see the pair move back to the volume point of control in the 0.7100 area in due course.
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.