14 Apr 2014
AUD/USD - Brief drive above 0.94 mark
FXStreet (Bali) - AUD/USD saw strong inflows at the Tokyo open, a time when volumes tends to be the highest for the day, with the exchange rate topping out at 0.9407 before losing the round number.
The pair, which has been on an impressive uptrend, found decent selling pressure on Friday, following its last short squeeze to a new high of 0.9459. The AUD has recently faced more difficulties to keep up the bullish tone, with the double topside failure at 0.9425 on Friday, coupled with the inability to maintain 0.94 in early Tokyo today and the breakout of the hourly ichimoku cloud, a communication that a period of consolidation or risk of further downward pressures may loom near. From a geopolitical standpoint, the 'risk off' headlines coming from Ukraine should be another factor limiting gains in risk trades on Monday.
On the downside, immediate support can be found in each 20 pips sequence, starting at 0.9365/70, followed by 0.9350 and 0.9330, while on the upside, 0.94, 0.9425 and 0.9460 should act as resistance.
The pair, which has been on an impressive uptrend, found decent selling pressure on Friday, following its last short squeeze to a new high of 0.9459. The AUD has recently faced more difficulties to keep up the bullish tone, with the double topside failure at 0.9425 on Friday, coupled with the inability to maintain 0.94 in early Tokyo today and the breakout of the hourly ichimoku cloud, a communication that a period of consolidation or risk of further downward pressures may loom near. From a geopolitical standpoint, the 'risk off' headlines coming from Ukraine should be another factor limiting gains in risk trades on Monday.
On the downside, immediate support can be found in each 20 pips sequence, starting at 0.9365/70, followed by 0.9350 and 0.9330, while on the upside, 0.94, 0.9425 and 0.9460 should act as resistance.