AUD/USD: sell on ups
AUD/USD is consolidating in the $0.9138/00 area. The pair’s trading at the bottom of yesterday’s trading range, but above yesterday’s low at $0.9087. Analysts at RBS point out that Australian dollar “appears in a mood to ignore positive news and react to more negative news”.
FBS points out that although the market is overbought on daily and H4, it’s really hard to see reasons for buying AUD at this point. There’s a small divergence on H4, but the specialists recommend using pullbacks as the opportunity to enter/add to shorts with the initial target at $0.9065 (76.4% Fibo of the advance from Aug. to Oct.). The target of the H&S pattern lies at $0.9000. Resistance lies at $0.9200, $0.9250, $0.9280 and $0.9300.
Watch Australian HIA hew homes sales and private capital expenditure during the Asian session on Thursday.
Chart. Daily AUD/USD