AUDUSD Technical Analysis – FX Price Action – Outlook WC 28/1/13
(Forex-FX-4X.com, AUD/USD Technical Analysis, WC 28th Jan)
- Our previous AUDUSD update highlighted an inside day at key 1.0600 area resistance. This price action setup came after the so called Aussie took out the intermediate swing high around 1.0583 and failed to see any additional upside momentum.
- The breakout of this inside day has now seen the AUDUSD drop under the 1.0500 handle round number area and the ascending trend line (see fig 1 chart). This drop lower comes after the consolidation phase between the psychological round number area and key resistance.
- The Australian dollar finished the week near a three-week low versus its U.S. counterpart; market participants look to be pricing in further potential for interest rate cuts from the RBA (Reserve Bank of Australia).
- Large specs trading futures contracts at the CME (Chicago Mercantile Exchange) had cut the net long AUD FX position by around 9% on the weekly basis and an associated net $10.4 billion, according to the latest data from the CFTC (Commodity Futures Trading Commission).
- The above comes as the US dollar has been trading strongly versus most currency counterparts, with the key exceptions being the euro and highly correlated currencies like the CHF (Swiss Franc).
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