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7 Jan 2014
AUD/USD ends lower, further away from 0.9000
FXstreet.com (Córdoba) - The AUD/USD extended the decline on Tuesday from 0.9000 and finished at 0.8920, losing 40 pips. During the American session the pair bottomed at 0.8892 but managed to recover quickly back above 0.8900.
The US Dollar rose on Tuesday against commodity currencies, ahead of the release of the FOMC minutes and following trade data, that showed a surprise decline in the trade deficit.
Technical outlook for the AUD/USD
In the las hours the pair has remained steady moving in a 10-pips range, consolidating losses and holding a short-term bearish bias. To the upside, the Aussie is having difficulties holding above 0.9030 while to the downside has been rejected from levels under 0.8900.
“According to the hourly chart, another leg low is possible, as price is being capped by a bearish 20 SMA while indicators stands in negative territory, yet as said earlier, a break below 0.8870 is needed to confirm the move” says Valeria Bednarik, Chief Analyst at FXstreet.com. According to Bednarik, the bearish tone in the four hour charts remains intact, “with price below its 20 SMA and momentum heading lower below its midline”.
The US Dollar rose on Tuesday against commodity currencies, ahead of the release of the FOMC minutes and following trade data, that showed a surprise decline in the trade deficit.
Technical outlook for the AUD/USD
In the las hours the pair has remained steady moving in a 10-pips range, consolidating losses and holding a short-term bearish bias. To the upside, the Aussie is having difficulties holding above 0.9030 while to the downside has been rejected from levels under 0.8900.
“According to the hourly chart, another leg low is possible, as price is being capped by a bearish 20 SMA while indicators stands in negative territory, yet as said earlier, a break below 0.8870 is needed to confirm the move” says Valeria Bednarik, Chief Analyst at FXstreet.com. According to Bednarik, the bearish tone in the four hour charts remains intact, “with price below its 20 SMA and momentum heading lower below its midline”.