Comments on: AUD/USD: Technical support levels holding at .9430

By: ExpatWatcher

ExpatWatcher — Wed, 19 Jun 2013 05:11:46 +0000

The perturbing thing about this pattern – the right shoulder (dipping into 0.9430) is kind of holding (on hourly close basis) the 61.8% retrace from the bounce out of the head at 0.9325. Also there is a clear A-B-C from the 11 June low that peaked at 0.9665 and AUD has been weak (lower highs and lower lows) ever since. maybe it is a trade to enter on break of range 0.9430 or 0.9665

By: JasperD

JasperD — Wed, 19 Jun 2013 05:06:07 +0000

Hi Sean, the issue that’s pressuring Aussie right now is negativity about China, IMHO. Unless the Chinese government annouces some stimulus or PBOC starts adding liquidity to the banking system, Chinese economy will be tanking. Hard to get too upbeat about Aussie in this environment, aside from short covering rallys from time to time.

By: FxDrive

FxDrive — Wed, 19 Jun 2013 04:16:55 +0000

Well from the book i remember that you can play it aggressively or conservative. Either against support at.9430 or breakout from resistance at .9665/70. Both look pretty entrenched right now.

By: Sean Lee

Sean Lee — Wed, 19 Jun 2013 04:06:33 +0000

Well spotted Adrian 🙂 I’m tempted but will leave alone until the FOMC madness has passed by

By: FxDrive

FxDrive — Wed, 19 Jun 2013 03:51:38 +0000

Morning Sean ( well, morning here 🙂 ). On that .9430 level i would point out that it looks like we might have a complex inverted H&S on 4H charts. Left shoulder on June 6 , head on June 11 and we’re in the process of forming a second right shoulder, neckline sits at .9665. The short term momentum looks supportive of such scenario, and the last pattern we talked about on 1h charts played nicely. If price will bounce and break the neckline the measured target will be parity. On 1h charts there is a divergence in momentum to the upside and we got a hammer candle off support. Looks supportive to me :D.