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31 Dec 2013
AUD/USD pressing to session highs following data; bulls eyeing resistance at 0.8990
FXstreet.com (Barcelona) - The AUD/USD is ripping higher in light, pre-holiday trade as overly bearish traders may have been caught off guard by the surprisingly bad pending home sales data in the US and the surprisingly good credit data in Australia.
AUD/USD traders to ride momentum and technicals until US session
The short-term momentum for AUD/USD is in favor of the bulls and the technicals indicate the cross is likely going to continue higher until at least the first Fibonacci retracement level at 0.8990. US data due out during the US session Tuesday may either help the cross up to this target or halt all the momentum on the spot. The two data points due out are the US Chicago Purchasing Managers Index and US Consumer Confidence data.
Technical outlook for AUD/USD
Technicians say the macro trend for AUD/USD is lower with a downside target of 0.8441 (versus 0.8937 currently) – which is plenty of downside potential for the bears to enjoy. They note that the cross is coming off of oversold conditions and is likely to continue to bounce up to one of three resistance levels – 0.8990, 0.9096 or 0.9181.
AUD/USD traders to ride momentum and technicals until US session
The short-term momentum for AUD/USD is in favor of the bulls and the technicals indicate the cross is likely going to continue higher until at least the first Fibonacci retracement level at 0.8990. US data due out during the US session Tuesday may either help the cross up to this target or halt all the momentum on the spot. The two data points due out are the US Chicago Purchasing Managers Index and US Consumer Confidence data.
Technical outlook for AUD/USD
Technicians say the macro trend for AUD/USD is lower with a downside target of 0.8441 (versus 0.8937 currently) – which is plenty of downside potential for the bears to enjoy. They note that the cross is coming off of oversold conditions and is likely to continue to bounce up to one of three resistance levels – 0.8990, 0.9096 or 0.9181.