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Will AUD/USD Hold 0.8900.?
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After a 1.7% decline witnessed in the previous week, AUDUSD currency pair continued drifting lower since the beginning of this week and on Wednesday, the
- After a 1.7% decline witnessed in the previous week, AUDUSD currency pair continued drifting lower since the beginning of this week and on Wednesday, the pair slipped below 0.8900 level to test August 2 closing low. In two weeks AUDUSD currency pair has given up all of its gains registered in the first week of August. The pair, however, witness a minor pull-back and is currently holding above the 0.8900 mark.
- AUDUSD currency pair has not provided a weekly closing below 0.8900 since mid of August 2010 and thus, 0.8900 level could possibly determine the near-term direction of the currency pair.
- Should the pair manage to hold 0.8900 on weekly closing basis, the pair could bounce back towards 50-day SMA, currently near 0.9100. Further, should the pair manage to provide daily close above 50-day SMA, it might continue strengthening in the near-term initially towards 0.9300 – 0.9310 strong resistance zone and further towards 0.9400 horizontal resistance zone. 0.9180 and 0.9240 area seems to provide intermediate resistance for the currency pair.
- Alternatively, should the pair fail to hold 0.8900 important closing on weekly basis, the pair could initially drop to 0.8800 – 0.8790 horizontal support and could even test sub 0.8700 level (0.8660 level) in the near-future.
- Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/
About the Author
Haresh Menghaniauthor
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