7 Jun 2013
AUD/USD edges out small gains after roller coaster trading session
FXstreet.com (Barcelona) - After trading all the way down to 0.9434 (lowest levels since late September 2010), the Aussie was able to claw back all of its intra-day losses, climbing all the way back to close up 25 pips at 0.9558.
According to analysts at NAB Global, "there have been some very large moves in key international currencies in the last 24 hours with volatility extreme. The Australian dollar has been no exception, hitting a fresh low of around 0.9435 about 2.30pm AEST yesterday but then rallying to a high of 0.9674 around 2.30am, before easing back to about 0.9616 in early Friday trading. These moves in the AUD were background noise to some huge moves in offshore currencies, the most spectacular a rise in Yen to a high of 95.91."
Although the rally off the lows was impressive, the trend following indicators on the daily chart remain bearish which could help limit advances in the coming sessions. Furthermore, the RSI (14) wasn’t able to achieve any ground above 45 which is a sign momentum sellers are looking to take advantage of any counter trend rally. First resistance sits at 0.9615 (the 9dma), followed by 0.9708 (the 20dma). Initial support sits at 0.9530 (the 20dma on 1 hour chart).
According to analysts at NAB Global, "there have been some very large moves in key international currencies in the last 24 hours with volatility extreme. The Australian dollar has been no exception, hitting a fresh low of around 0.9435 about 2.30pm AEST yesterday but then rallying to a high of 0.9674 around 2.30am, before easing back to about 0.9616 in early Friday trading. These moves in the AUD were background noise to some huge moves in offshore currencies, the most spectacular a rise in Yen to a high of 95.91."
Although the rally off the lows was impressive, the trend following indicators on the daily chart remain bearish which could help limit advances in the coming sessions. Furthermore, the RSI (14) wasn’t able to achieve any ground above 45 which is a sign momentum sellers are looking to take advantage of any counter trend rally. First resistance sits at 0.9615 (the 9dma), followed by 0.9708 (the 20dma). Initial support sits at 0.9530 (the 20dma on 1 hour chart).