Capital Trust
Capital Trust

Dec 21, 2014

08:32 AM EDT

  • New York close
  • London close
  • Tokyo close
  • Sydney close
Market Analysis

Home » Featured » AUD/USD – Recent Corrections Have been Under 100 Pips

AUD/USD – Recent Corrections Have been Under 100 Pips

Forex Technical Update

AUD/USD 4H chart 2/12/2013 2:40PM EST


Falling channel: Since late January, the AUD/USD has been in a falling channel seen in the 4H chart. The RSI shows a bearish momentum as it tags 30 and has held under 60. Also, the moving averages are in bearish alignment with higher periods above the lower ones.

Today (2/12) we saw a pullback from a new 2013 low. As this rally develops, I wanted to take a look at what the strongest pullbacks have been since the market has been falling from the 1.06 handle.

It turns out that the strongest pullbacks have been 90+, and under 100 pips. Today’s pullback has been about 95 pips so far. Will this pattern repeat?

Scenarios: As a trader, you should probably be ready for both the yes and no answer. Yes means following the recently bearish trend after this 90+ pip pullback. However, a pullback above 100 pips could change things. Still, I would like to see price push above 1.0360, and the falling channel resistance before considering a bullish outlook. The bearish scenario has 1.0150-1.0165 key range lows in sight. A break above 1.0360 first opens up the next resistance pivot in the 1.0450-60 area.

A break of the 4H RSI above 60 would also help show loss of bearish momentum.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.

Share!Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+

, ,

Leave a Reply

Forex, Commodities, Indices

Face Book and Twitter Box

Follow Us

Daily Updates

Daily Updates

Get the latest fundamental analyses, technical analyses and the most up-to-date Forex news catered to your interests, everyday.