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4 Apr 2014
AUD/USD on firmer tone in early Asia
FXStreet (Bali) - AUD/USD is on the rise in early Asia, posting a session high of 0.9240 after recovering from levels near 0.92 in early Europe.
According to market sources, despite heavy selling interest to break below 0.92, failure to do so is now causing a short squeeze which has the potential to reach the next intraday target at 0.9250/55, where renewed selling interest is likely to re-emerge ahead of the NFP.
Taking a step back from intraday noise, the hourly shows the chart a market still trapped in a 0.9215-0.93 rane-bound environment, with constant clashes between evenly balanced bids/offers still resulting in undefined next bias.
While technicals would suggest that a correction at current levels may be due given the double topside failure at 0.93, the fact that next flows will be determined by the NFP number makes the projection for future directions subject to the deviation on the NFP outcome.
According to Jim Langlands, Founder at FXCharts: "For today use 0.9200/50 as a guide and then wait for the NFP. Buying dips with a SL under the 100 DMA remains the strategy."
According to market sources, despite heavy selling interest to break below 0.92, failure to do so is now causing a short squeeze which has the potential to reach the next intraday target at 0.9250/55, where renewed selling interest is likely to re-emerge ahead of the NFP.
Taking a step back from intraday noise, the hourly shows the chart a market still trapped in a 0.9215-0.93 rane-bound environment, with constant clashes between evenly balanced bids/offers still resulting in undefined next bias.
While technicals would suggest that a correction at current levels may be due given the double topside failure at 0.93, the fact that next flows will be determined by the NFP number makes the projection for future directions subject to the deviation on the NFP outcome.
According to Jim Langlands, Founder at FXCharts: "For today use 0.9200/50 as a guide and then wait for the NFP. Buying dips with a SL under the 100 DMA remains the strategy."