The better
than expected Non-Farm Payrolls report out of the U.S. and the unemployment
rate have caused the AUD/USD to drop to the 0.9200 level as the dollar strengthens
versus the other major currencies. We have been anticipating this move for
quite some time now, and today it has visited that level, bouncing from it to
the upside.
So far the
bounce has produced a plus 30 pip move and it is heading towards the 200 period
exponential moving average on the 4 hour chart as shown on the image below, courtesy
of the Forex Broker Activtrades http://www.activtrades.co.uk/. This 200 period EMA (blue
line) may stop the price there, because if this zone was a good support level
in the past, now that it has been broken, it should act as a resistance. A
second visit to the 0.9200 level could give us another bounce to the upside,
but we must be aware that the probabilities of a breakdown on a second visit
rise.
Good point. I'll be careful.
ReplyDeleteLet's see how it behaves at that level.
ReplyDeleteUntil the industrial output in China shows signs of improvement I will be bearish on aussie
ReplyDeleteThe Aussie will move this for sure one way or the other, lets see what the announcements Tuesday and Wednesday will bring us.
ReplyDelete