AUD/USD, more signs of bottoming

FXstreet.com (Buenos Aires) – The FED did not failed in bringing life to a comatose market: majors are strongly up against the dollar, with the AUD nearing 0.9200 after mixed headlines hitting the wires: QE will start “soon” and QE3 may end entirely this year, although further improvement in employment is needed. The news however are putting the greenback on its back foot, as the American currency continues to shed gains across the board

Signs of bottoming

As for the AUD/USD, the pair surged over 70 pips already, and approached to 0.9200, having been earlier today as high as 0.9233. According to Valeria Bednarik, FXstreet.com chief analyst, “the pair continues giving signs of a probable bottom just around 0.9000, surging over the European session to a fresh 1week high. In the daily chart, a round bottom is forming these days, with its neckline around 0.9350, late June daily highs. Steady gains above the level should point for a stronger recovery in the pair, up to 0.9650 area over the upcoming days. Only a price acceleration below 0.9000 will now deny the possibility on a recovery and see the return of the bearish trend.”

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