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22 May 2014
AUD/USD has fumbled at 0.9260
FXStreet (Moscow) - AUD/USD spiked to Asian high of 0.9266 on the back of inspiring Chinese flash PMI, but failed to go through the area of stops clustered above 0.9250.
Is it time for Aussie’s correction?
The Chinese PMI came out at 49.7 against 48.1 in April, thus proving the undergoing process of recovery in the second largest economy in the world. The pair got the last fundamental catalysts of the current week today in the morning, thus, reducing the chances for new breakouts for the short-term. Nevertheless, we must admit it showed a significant slide 200-pip worth during the last three days, anв now it may be the time for the deserved correction back. In this case the initial target may be at 0.9300 resistance level.
What price levels and patterns have to be considered?
Spot is presently trading at 0.9264, and next resistance can be seen at 0.9269 (Daily Classic R1), 0.9270 (Daily High), 0.9281 (Weekly Classic S2), 0.9286 (Daily Classic R2) and 0.9301 (Hourly 100 SMA).
To the downside we see next support at 0.9255 (Yesterday's High), 0.9251 (Daily Open), 0.9243 (Monthly Low), 0.9243 (Weekly Low) and 0.9238 (Daily Classic PP).
Regarding candlestick formations, we can see Doji formation on the 4-hour .
Is it time for Aussie’s correction?
The Chinese PMI came out at 49.7 against 48.1 in April, thus proving the undergoing process of recovery in the second largest economy in the world. The pair got the last fundamental catalysts of the current week today in the morning, thus, reducing the chances for new breakouts for the short-term. Nevertheless, we must admit it showed a significant slide 200-pip worth during the last three days, anв now it may be the time for the deserved correction back. In this case the initial target may be at 0.9300 resistance level.
What price levels and patterns have to be considered?
Spot is presently trading at 0.9264, and next resistance can be seen at 0.9269 (Daily Classic R1), 0.9270 (Daily High), 0.9281 (Weekly Classic S2), 0.9286 (Daily Classic R2) and 0.9301 (Hourly 100 SMA).
To the downside we see next support at 0.9255 (Yesterday's High), 0.9251 (Daily Open), 0.9243 (Monthly Low), 0.9243 (Weekly Low) and 0.9238 (Daily Classic PP).
Regarding candlestick formations, we can see Doji formation on the 4-hour .