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27 Aug 2013
AUD/USD rolling back over after a brief bounce; 0.8938 remains the target
FXstreet.com (Barcelona) - The AUD/USD reached a short-term Fibonacci projection at 0.8968 and bounced. However, it now appears to be rolling back over on the way down to the 0.8938 target.
Traders appear to be running away from risk and into safety
The concerns over Syria have given an already weakening AUD/USD another reason to sell off. As the hours pass Tuesday, traders will be able to focus on something else other than Syria. The question is whether any data or news will have enough juice to overshadow the Syrian situation.
Tuesday will once again bring only US data – this time in the form of the S&P Case Schiller Home Price Index, Consumer Confidence numbers and the Richmond Fed Manufacturing Index.
Technical outlook for AUD/USD
The AUD/USD cross set a new “correction resistance” peak at around 0.9067. That, if the Elliott Wave technicians are correct, should be it for the AUD/USD’s upside in the very short-term. The next major hurdle above that will be 0.9102 – the 8/19 low. Those same technicians are calling for a move down to around 0.8938 before another (perhaps larger) bounce commences. Bears need the AUD/USD to cave through Friday’s low at 0.8970 before the key 0.8938 level is even tested.
Traders appear to be running away from risk and into safety
The concerns over Syria have given an already weakening AUD/USD another reason to sell off. As the hours pass Tuesday, traders will be able to focus on something else other than Syria. The question is whether any data or news will have enough juice to overshadow the Syrian situation.
Tuesday will once again bring only US data – this time in the form of the S&P Case Schiller Home Price Index, Consumer Confidence numbers and the Richmond Fed Manufacturing Index.
Technical outlook for AUD/USD
The AUD/USD cross set a new “correction resistance” peak at around 0.9067. That, if the Elliott Wave technicians are correct, should be it for the AUD/USD’s upside in the very short-term. The next major hurdle above that will be 0.9102 – the 8/19 low. Those same technicians are calling for a move down to around 0.8938 before another (perhaps larger) bounce commences. Bears need the AUD/USD to cave through Friday’s low at 0.8970 before the key 0.8938 level is even tested.