OctaFX | OctaFX Forex Broker
Open trading account
Back

Forex: AUD/USD shows clean 1.0180 breakout

After setting the stage for a breakout to the downside, sellers have finally come in earnest to take the AUD/USD spot rate from 1.0180 key support all the way down to 1.0160, tripping a few stops in the process.

The break lower had all the pre-breakout characteristics following two touches off the 1.0180 for the breakout to be official, which indicated buyers had been protecting the level with some determination in the past. However, note the shallowness of the last bounce Friday, also price action squeeze since Feb 28, all suggestive of a pair being controlled by selling forces.

Prior to the break south, in the last NY session, the timid bounce off lows was capped by the 1-house 20EMA, a hint that those sellers seeking to rejoin the downtrend on a corrective pullback may use that indicator as dynamic resistance too.

From a 5-minute chart, we can see the breakout had key elements confirming it is a legitimate one. There has been 2x 5-minute large body bear candles, with small wicks to the downside, and 20 pips clearing distance prior to a last bullish pin bar. The price action enhances odds that strong selling interest may be found on any potential retest of 1.0180. On the downside, the price stalled at the key 1.0160 support, significant swing low from last August 2012.

Forex Flash: AUD/USD to test 1.01 - BBH

The AUD/USD is currently showing a price activity which is pre-preemptive of a breakout lower, currently breaching the 1.0180 post Australian data.
Read more Previous

China, Hing Kong markets hit on home sales tax hike

The Shangai Composite index is tumbling on Monday following the issuance of stricter property rules in China, in what seems a last-ditch effort to combat speculation on housing prices.
Read more Next
Start livechat