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7 Mar 2014
Flash: AUD/USD erodes key resistance and targets the 200 day ma - Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that AUD/USD has eroded the 0.9079/86 resistance, (the January high and 38.2% retracement of the move down from the end of October).
Key Quotes
“This suggests ongoing strength to the 200 day ma at 0.9172 and the 2013-2014 resistance line at 0.9198, where we suspect the upmove will falter. As an aside it is possible that it is an inverse head and shoulders pattern (which will offer a target of 0.9500), but as patterns do not outweigh downtrends, we look for a move to the trendline only for now.
“The market has recently broken higher from a consolidation phase and dips should now hold the 0.9001 20 day ma.”
Key Quotes
“This suggests ongoing strength to the 200 day ma at 0.9172 and the 2013-2014 resistance line at 0.9198, where we suspect the upmove will falter. As an aside it is possible that it is an inverse head and shoulders pattern (which will offer a target of 0.9500), but as patterns do not outweigh downtrends, we look for a move to the trendline only for now.
“The market has recently broken higher from a consolidation phase and dips should now hold the 0.9001 20 day ma.”