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AUD/USD on upswing – likely now in “c” wave of “abc” upside correction; resistance 0.8990

FXstreet.com (Barcelona) - The AUD/USD has been miserable recently, but now appears to be in the “c” wave of and “abc” correction higher that should – according to Elliott Wave technicians – top out near Fibonacci resistance at 0.8990.

Aussie credit data lifts AUD/USD Tuesday

Monday saw weak US housing data which gave the AUD/USD a lift. Early Tuesday brought better than expected Aussie credit data and the cross is lifting further. Later in Tuesday’s session, traders will get a chance to react to the US Chicago Purchasing Managers Index and the US Consumer Confidence survey.

Technical outlook for AUD/USD

Tim Thielen, Portfolio Manager at Sea Change Capital, LLC, feels that the AUD/USD is in the midst of a macro down move – wave 5 of III lower to be more precise. The downside target for this wave is 0.8441 (versus 0.8922 currently) – which is plenty of downside potential for the bears to enjoy. He notes, however, 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.

S&P 500 moving sideways in very light trade; technical target remains 1861

US equity futures are hugging the flat line early on Tuesday as most large traders are now in full vacation mode until at least Thursday and likely even until Monday.
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GBP/USD closed Monday above resistance at 1.6483; next upside is recent high at 1.6577

The GBP/USD is lifting once again Tuesday after closing above short-term projection of 1.6483. If it can conquer the recent intraday high of 1.6577, the door is open for a move up to north of 1.6700.
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