AUD/USD Technical & Fundamental Outlook Dec 2013

FXOpen

AUD/USD on Wednesday finally gave a daily closing below 0.9266 after too much reluctance, thus breaking a key 76.4% fib level. The pair has now come under relatively stronger bearish trend which is in-line with Head & Shoulder (H&S) Price Pattern on daily chart.

Major Support & Resistance Levels

At the moment in Asian session spot is around 0.9034 where it is likely to find an immediate resistance at 0.9066 (76.4% fib level), a break and daily close above this resistance may again open doors for 0.9194 and then 0.9301.

AUD/USD Technical & Fundamental Outlook Dec 2013

On downside, no major support is seen until the price reaches 0.8845 (100% retracement). In short term, the pair however may find some support around 0.8997 (yesterday low).

Technical Indicators

Relative Strength Index (RSI) is in bearish zone with readings of 48, 40, and 30 on hourly, four hour and daily timeframes respectively. There are no signs of divergence in MACD; however, it is indicating downtrend continuation through bearish crossover on four hour chart. Bollinger bands are showing support and resistance at 0.8954 and 0.9456 respectively on daily timeframe. We also have bearish crossover of 55 MA and 200 MA on weekly timeframe which is a strong indication of downtrend continuation.

Fundamental Situation

Today we got a worse than expected reading of Australian trade balance which was -529M against a forecast of -375M, though previous reading was also revised to -271M from -284M. Not to mention, yesterday Australian Gross Domestic Product (GDP) YoY data of third quarter also disappointed investors with worse than expected figure of 2.3% against 2.6% forecast. Now we have a series of important economic reports about the US economy scheduled later in the US Session that also include third quarter GDP figure and Personal Consumption Expenditures Prices situation, better than expected readings may strengthen tapering expectations.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

EUR/USD Analysis: Euro Showing Signs of Strength Market Analysis: EUR/USD Starts Increase While USD/JPY Dips Dollar Holds Steady after Producer Price Data Release GBP/JPY: Price Corrects from 8.5 Year High Is the UK really in a recession? Perhaps 2024 data will be different

Latest articles

Forex Analysis

EUR/USD Analysis: Euro Showing Signs of Strength

Today news was published about the values of PMI indices for European economies. Data from France was encouraging: → French Flash Manufacturing PMI: actual = 46.8, expected = 43.5, a month ago = 43.1; → French Flash Services PMI: actual = 48.0,

Shares

NVDA Share Price Soars 11% after Report

The signs of concern we wrote about yesterday have largely subsided. After three days of declines, the price of E-mini Nasdaq 100 futures bounced off the lower boundary of the channel (see yesterday's chart) and rose, led by NVDA stock.

Cryptocurrencies

Ethereum Price Falls after Exceeding $3,000

We previously wrote about the reasons for the positive sentiment in the ETH/USD market. Optimism was added by a post on X (Twitter) by Vitalik Buterin about the so-called Werkle trees. This technology, which should (according to the information

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.