5 Feb 2014
AUD/USD drifts lower to test 0.89 on profit-taking
FXStreet (Bali) - AUD/USD is trading a tad softer in the Tokyo session, having eased off a 3-week high at 0.8940 to currently test bids at 0.89, mostly on profit taking.
Aussie was the big winner on Tuesday, after the RBA Governor Stevens confirmed the 'neutral' stance in monetary policies, saying it is prudent to keep rates stable for the time being, while omitting any references to the AUD being over-valued, another positive AUD driver.
Technically, according to Valeria Bednarik, Chief Analyst at FXStreet: "The 20 SMA presents a strong bullish slope below current price, reflecting the prevailing bullish momentum. In the 4 hours chart price advances above its 200 EMA, as indicators maintain the upward tone seen early today, supporting further gains ahead with immediate resistance now in the 0.8950 areas." Should 0.89 be lost, further support is noted at 0.8880/85, Jan 22 swing high.
Aussie was the big winner on Tuesday, after the RBA Governor Stevens confirmed the 'neutral' stance in monetary policies, saying it is prudent to keep rates stable for the time being, while omitting any references to the AUD being over-valued, another positive AUD driver.
Technically, according to Valeria Bednarik, Chief Analyst at FXStreet: "The 20 SMA presents a strong bullish slope below current price, reflecting the prevailing bullish momentum. In the 4 hours chart price advances above its 200 EMA, as indicators maintain the upward tone seen early today, supporting further gains ahead with immediate resistance now in the 0.8950 areas." Should 0.89 be lost, further support is noted at 0.8880/85, Jan 22 swing high.