AUD/USD: sell on a break of $0.9375
Authored by Kira Iukhtenko
Despite all the recent bullish forecasts, the Aussie dollar keeps on consolidating below the psychological $0.9500 mark. AUD/USD trades in a sideways $0.9360/0.9430 range after having peaked at $0.9460 last week.
The short-term prospects of the pair are clearly bearish. As can be seen from the weekly chart, AUD slowed the upside after meeting resistance at the bottom of the weekly bearish Ichimoku cloud ($0.9450). Daily RSI shows the pair remains overbought. The pair is forming a symmetric triangle (see the H4 chart).
The Fed’s Chairwoman Yellen is scheduled to speak today at 12:45 GMT. The market will be carefully analyzing her rhetoric after the controversial Fed’s meeting minutes released last week. USD will strengthen if Yellen reiterates the intention to hike fund rate sooner than it was previously expected.
Trade recommendation: Sell stop order at $0.9375 with a target of $0.9340 and a stop at $0.9390.
Support: $0.9340 (61.8% Fibo, 55-day MA), $0.9300 and $0.9200/10
Resistance: $0.9400, $0.9450/60 and $0.9500.
Chart. H4 AUD/USD