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5 Aug 2013
AUD/USD gapped up on Australian election news; headed lower still, though
FXstreet.com (Barcelona) - News out of Australia that they will be holding a critical national election on September 7th gave the AUD/USD a boost at the open this week. That pop has already started to fade, however.
After the news-induced pop, the bears trying to regain control
Australia’s government announced Monday that the time has come to hold a national election to determine who will lead their country through the difficult times they are going through now and likely into the future. Read more on the upcoming elections here.
The initial reaction in the market was to give the AUD/USD a boost at the open of trading on Monday. That reaction was faded rather quickly, however, and the bears appeared unconvinced that the elections would go in the favor of fiscal / monetary hawks.
Technical outlook for AUD/USD
Technicians are now eyeing a Fibonacci projection down at 0.8812 as a point where a fairly substantial bounce will occur in the AUD/USD. Below that level no additional projections come into play until 0.8683 – which is horizontal line support on the weekly chart. Short-term resistance now comes in at Friday’s high at 0.8969 and is followed up by the 7/12 close at 0.9048.
After the news-induced pop, the bears trying to regain control
Australia’s government announced Monday that the time has come to hold a national election to determine who will lead their country through the difficult times they are going through now and likely into the future. Read more on the upcoming elections here.
The initial reaction in the market was to give the AUD/USD a boost at the open of trading on Monday. That reaction was faded rather quickly, however, and the bears appeared unconvinced that the elections would go in the favor of fiscal / monetary hawks.
Technical outlook for AUD/USD
Technicians are now eyeing a Fibonacci projection down at 0.8812 as a point where a fairly substantial bounce will occur in the AUD/USD. Below that level no additional projections come into play until 0.8683 – which is horizontal line support on the weekly chart. Short-term resistance now comes in at Friday’s high at 0.8969 and is followed up by the 7/12 close at 0.9048.