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23 May 2014
AUD/USD: Risk skewed to the downside
FXStreet (Bali) - AUD/USD failed to maintain the HSBC China PMI-driven gains, topping out at 0.9273 in the last Asian session before a steady slide to 0.9215, level where the daily support channel trendline has stalled the bear's stampede ahead of Tokyo.
Sean Lee, Founder at FXWW, notes optionality-related activity near by as the main focus of the market at the moment, saying "I’m unsure whether the AUD/USD market can generate enough momentum to challenge the .9200 barrier from 25 pips away", adding that "Australian corporate bids are reported near recent lows at .9210 and of course we will get option protection ahead of .9200."
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes that "the hourly chart shows price well below a bearish 20 SMA and indicators still heading lower in negative territory." In the 4 hours chart, Valeria observes "the 20 SMA maintains a strong bearish slope while indicators diverge as momentum recovers toward its midline and RSI maintains the bearish tone." Valeria concludes that "risk remains to the downside as long as below 0.9270, with a break below the 0.9200 figure required to confirm more falls."
Sean Lee, Founder at FXWW, notes optionality-related activity near by as the main focus of the market at the moment, saying "I’m unsure whether the AUD/USD market can generate enough momentum to challenge the .9200 barrier from 25 pips away", adding that "Australian corporate bids are reported near recent lows at .9210 and of course we will get option protection ahead of .9200."
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes that "the hourly chart shows price well below a bearish 20 SMA and indicators still heading lower in negative territory." In the 4 hours chart, Valeria observes "the 20 SMA maintains a strong bearish slope while indicators diverge as momentum recovers toward its midline and RSI maintains the bearish tone." Valeria concludes that "risk remains to the downside as long as below 0.9270, with a break below the 0.9200 figure required to confirm more falls."