10 Jun 2013
Aussie clawing back early losses, eyes resistance at 0.9500
FXstreet.com (Barcelona) - After trading as low as 0.9393 earlier in the session, the Aussie has managed to claw back a good portion of its losses and is now up 50 pips at 0.9454 (note this is still well below the Friday close of 0.9515).
The FXStreet.com Trend Index remains in strongly bearish set up on the 1 hour chart, while the ob/os index reads neutral. Initial resistance is sitting at 0.9469 (the 9dma on 1 hour chart), followed by 0.9504 (the 50dma on 1 hour chart). First support sits at 0.9430 (gap down support on 1 hour chart), followed by 0.9393 (low of session).
From a longer term technical perspective, the technical set up still remains bearish on the daily chart. Price is sitting below both short term moving averages, and the RSI (14) is consolidating below the 40 level (within the bearish range between 20 and 60). Given both of these developments, it may be difficult for the Aussie to find substantial follow through as we progress through the week.
The FXStreet.com Trend Index remains in strongly bearish set up on the 1 hour chart, while the ob/os index reads neutral. Initial resistance is sitting at 0.9469 (the 9dma on 1 hour chart), followed by 0.9504 (the 50dma on 1 hour chart). First support sits at 0.9430 (gap down support on 1 hour chart), followed by 0.9393 (low of session).
From a longer term technical perspective, the technical set up still remains bearish on the daily chart. Price is sitting below both short term moving averages, and the RSI (14) is consolidating below the 40 level (within the bearish range between 20 and 60). Given both of these developments, it may be difficult for the Aussie to find substantial follow through as we progress through the week.