Technical Report: AUD/USD Maintains Trading Below 0.9300
ICN.com | Apr 24, 2014 05:09AM ET
The pair failed to breach 1.3850 and stabilize above it yesterday weakening the upside move. By examening RSI 14, we notice slight weakness despite that its still stable above line 50, as Stochastic tends to be neutral despite that its signal lines are trading above line zero.
The abovementioned indicates that the upside move is somehow weak, but since trading is still stable above 1.3780 we hold on to our positive expectations because the pair is trading within an ascending channel as showin on graph. Stochastic is positive and supports our expectations, but the pair has to stabilize above 1.3850 to confirm our positive outlook intraday today and bring positivity back to RSI and MACD Indicators.
The pair failed to remain stable above 1.6820 yesterday and dropped to stabilize below Linear Regression Indicator 34 greatly reducing positivity. We cannot favor a downside move now due to stabilizing above 1.6780 and Linear Regression Indicator 55 at 1.6720 levels especially that the pair is within an ascending channel.
AROON Indicator is showing a sharp drop in the bullish strength but without a reversal signal. MACD is also attempting to achieve a negative crossover which is not confirmed yet. Therefore, we remain on the sidelines now waiting for new confirmation signals.
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The USD/JPY ended yesterday’s session slightly lower, however bearish attempts were rejected as price formed a long logged candle, with a major lower shadow at the 50-days SMA, and that hints renewed bullish pressures as price trades lower. Accordingly, we maintain our intraday bullish expectation as price settles above the 50-days SMA. 102.00 support level should hold for the bullish bias to remain intact.
The USD/CHF moved lower yesterday, however the move was rejected as price formed a lower shadow at the 50-days SMA, hinting a potential rebound. Holding above yesterday’s low at 0.8806 will probably keep the bullish rebound scenario probable.
The USD/CAD continues to consolidate in a narrow range, pushing slowly higher, where price tested the 50-days SMA yesterday, but formed a minor bearish shooting star candle, while a slowdown in the bullish momentum is clear. Accordingly, we remain on the sidelines, awaiting a confirmation signal for the resumption of the bearish wave, or a bullish breakout higher.
The AUD/USD maintains trading below 0.9300 mark, as price ended yesterday session decisively lower, holding below 0.9315 keeps the intraday bias to the downside, however as price is testing a support area around 0.9300, we prefer to remain on the sidelines awaiting a clearer trading signal.
The pair continues to push higher however fails to far to break and settle above 0.8625 resistance area, we mentioned earlier that a break above the latter is necessary to confirm a sustained rebound, otherwise, we remain cautious awaiting further confirmation signals.
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