17 Jul 2014
AUD/USD: Technicals remain bearish, 0.9320-40 key demand
FXStreet (Bali) - AUD/USD encountered strong buying interest at key support 0.9320-40, an area that continues to be fiercefully defended ever since first regained on June 6th.
While technical studies and price action are telling us that bearish pressure is increasing, with most declines off 0.95 top being impulsive in nature vs corrective recovery moves, the 0.9320-40 zone still needs to be absorbed in order to potentially see the next demand circa 0.9285-90 threatened.
On the upside, should the pick up in the rate extend along Asia, there are still plenty of reports suggesting solid selling interest between 0.9390 and 0.9410. Only above the latter, an extension towards 0.9450 could start being a realistic possibility.
While technical studies and price action are telling us that bearish pressure is increasing, with most declines off 0.95 top being impulsive in nature vs corrective recovery moves, the 0.9320-40 zone still needs to be absorbed in order to potentially see the next demand circa 0.9285-90 threatened.
On the upside, should the pick up in the rate extend along Asia, there are still plenty of reports suggesting solid selling interest between 0.9390 and 0.9410. Only above the latter, an extension towards 0.9450 could start being a realistic possibility.