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27 Aug 2013
AUD/USD peters out at 0.9067 correction resistance; test of 0.8938 coming?
FXstreet.com (Barcelona) - The AUD/USD gave it a shot, but even with horrible durable goods numbers out of the US Monday, the cross could not rally past key “correction resistance” at 0.9067.
Weak US data couldn’t give the AUD/USD the fuel it needed to break out
The US Durable Goods numbers that came out Monday morning sent Treasury rates lower and dragged the Dollar down with it for about 30 minutes. However, the AUD/USD cross set a top at just about 13:00 GMT and slid lower almost uninterrupted until it finally stabilized at 17:30 GMT. It did not even matter that the Dallas Fed Manufacturing number came out better than expected – nothing seemed to help except the shorts desire to book short-term profits.
Tuesday will once again bring only US data – this time in the form of the S&P Case Schiller Home Price Index, Consumer Confidence numbers and the Richmond Fed Manufacturing Index.
Technical outlook for AUD/USD
The AUD/USD cross set a new “correction resistance” peak at around 0.9067. That, if the Elliott Wave technicians are correct, should be it for the AUD/USD’s upside in the very short-term. Those same technicians are calling for a move down to around 0.8938 before another (perhaps larger) bounce commences. The next major hurdle above that will be 0.9102 – the 8/19 low. On the other hand, bears need the AUD/USD to cave through Friday’s low at 0.8970 on the way down to 0.8938.
Weak US data couldn’t give the AUD/USD the fuel it needed to break out
The US Durable Goods numbers that came out Monday morning sent Treasury rates lower and dragged the Dollar down with it for about 30 minutes. However, the AUD/USD cross set a top at just about 13:00 GMT and slid lower almost uninterrupted until it finally stabilized at 17:30 GMT. It did not even matter that the Dallas Fed Manufacturing number came out better than expected – nothing seemed to help except the shorts desire to book short-term profits.
Tuesday will once again bring only US data – this time in the form of the S&P Case Schiller Home Price Index, Consumer Confidence numbers and the Richmond Fed Manufacturing Index.
Technical outlook for AUD/USD
The AUD/USD cross set a new “correction resistance” peak at around 0.9067. That, if the Elliott Wave technicians are correct, should be it for the AUD/USD’s upside in the very short-term. Those same technicians are calling for a move down to around 0.8938 before another (perhaps larger) bounce commences. The next major hurdle above that will be 0.9102 – the 8/19 low. On the other hand, bears need the AUD/USD to cave through Friday’s low at 0.8970 on the way down to 0.8938.