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19 Dec 2013
AUD/USD resumes downward track after brief strength Wednesday; target of 0.8754 remains
FXstreet.com (Barcelona) - The AUD/USD cross tumbled once again Wednesday and is continuing to do so thus far on Thursday as traders recognize the fact that the US is willing to take steps towards taking their foot off the stimulus gas pedal while that is not as obvious in Australia.
AUD/USD traders to monitor US data for the rest of Thursday
Aussie Dollar strength early Wednesday was trumped by massive strength in the greenback late in the session following the FOMC’s announced decision to start tapering their bond and Treasury open market purchases. Any hope the few AUD/USD bulls had was quickly dashed as the news filtered through the markets and the nasty downtrend in the cross resumed.
Thursday’s economic data points due out that may have an impact on the AUD/USD include:
• US Weekly Jobless Claims
• US Conference Board Leading Indicators
• US Existing Home Sales
• US Philly Fed Manufacturing Survey
• US 7-Year Note Auction
Technical outlook for AUD/USD
Technicians say the AUD/USD is still in a very pronounced downtrend and shows no signs of reversing course just yet. The nearest meaningful downside target comes in at the 138.2% Fibonacci price projection line at 0.8754 – but Wednesday’s low of 0.8819 will obviously have to be broken first. Upside resistance for the cross comes in at the 12/16 pivot high at 0.8969 and is followed up by horizontal line resistance at 0.9000.
AUD/USD traders to monitor US data for the rest of Thursday
Aussie Dollar strength early Wednesday was trumped by massive strength in the greenback late in the session following the FOMC’s announced decision to start tapering their bond and Treasury open market purchases. Any hope the few AUD/USD bulls had was quickly dashed as the news filtered through the markets and the nasty downtrend in the cross resumed.
Thursday’s economic data points due out that may have an impact on the AUD/USD include:
• US Weekly Jobless Claims
• US Conference Board Leading Indicators
• US Existing Home Sales
• US Philly Fed Manufacturing Survey
• US 7-Year Note Auction
Technical outlook for AUD/USD
Technicians say the AUD/USD is still in a very pronounced downtrend and shows no signs of reversing course just yet. The nearest meaningful downside target comes in at the 138.2% Fibonacci price projection line at 0.8754 – but Wednesday’s low of 0.8819 will obviously have to be broken first. Upside resistance for the cross comes in at the 12/16 pivot high at 0.8969 and is followed up by horizontal line resistance at 0.9000.