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15 Aug 2013
AUD/USD trips 0.9160 stops; 0.9180 target hit
FXstreet.com (Barcelona) - The AUD/USD price action had an upside resolution through 0.9160 resistance, resulting on a quick ascension towards 0.9180 following heavy buying by systems coupled with internal stops.
The upside manifestation in prices came after what look like a valid breakout as buyers had been squeeze prices higher, the 20ema carried the market on the 5m chart alongside several tests of 0.9160 prior to breakout.
The market is now likely to pause around 0.9180 as the level converges with Aug 12 U.S. swing high, thus some resistance is expected. On the downside, watch for a retest of 0.9160 to see buying participation increased again.
According to John Noonan, Head of IFR Markets, "Slide in USD/JPY providing excuse to trigger stops in AUD/USD above 0.9170." Noonan looks at the next level of resistance, if 0.9180 broken, at Aug 12 trend high at 0.9221." According to the analyst, "sellers tipped between 0.9190/0.9200", so buyers should bear that in mind.
The upside manifestation in prices came after what look like a valid breakout as buyers had been squeeze prices higher, the 20ema carried the market on the 5m chart alongside several tests of 0.9160 prior to breakout.
The market is now likely to pause around 0.9180 as the level converges with Aug 12 U.S. swing high, thus some resistance is expected. On the downside, watch for a retest of 0.9160 to see buying participation increased again.
According to John Noonan, Head of IFR Markets, "Slide in USD/JPY providing excuse to trigger stops in AUD/USD above 0.9170." Noonan looks at the next level of resistance, if 0.9180 broken, at Aug 12 trend high at 0.9221." According to the analyst, "sellers tipped between 0.9190/0.9200", so buyers should bear that in mind.