AUD/USD Bounced At Resistance
Posted on October 7, 2009 by Yohay
Filed Under Forex Opinions | 19 Comments
The rate hike by the RBA fueled the Aussie’s engine for further gains. These gains came to halt at the 0.8950 resistance line.
The surprising decision by Glenn Stevens on Tuesday morning sent the Aussie above last week’s peaks. Australia was the first country in the West to raise interest rates. They went from 3% to 3.25%, making their high rate even higher.
At first, AUD/USD went up 0.8870, where it stalled for many hours. It then continued the climb the steady climb upwards, trading between 0.8870 to 0.8900.
This morning, it made another move up. The Aussie rose up to 0.8950, which was the support line last year, temporarily stopping AUD/USD from falling during the height of crisis. I’ve mentioned this resistance line in the AUD/USD Outlook.
Upon reaching 0.8950, the Aussie fell back very fast, now trading at 0.8880. It’s amazing to see how the resistance line worked in a very precise manner. I keep repeating this over and over again: AUD/USD is the most predictable currency pair.
What lies ahead?
I continue to be bullish for the Aussie. The strong economy, high interest rates and the recent uncharted price of gold all pave the way up. I believe that this break upon reaching the resistance line is temporary, and that the uptrend will resume.
The next, far and major resistance line above 0.8950 is 0.93. Below, a strengthening US dollar will be supported at 0.85.
Decisions by the IMF and the continuing rise of gold will also affect the pair this week.
Further reading:
- Mohammed Isah on gold’s new territory.
- Wade Hansen on gold.
- Which country will be the next to raise rates?
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I agree with you,the AUSSIE is the predictable currency.
Thanks judenuel!
Great reporting as usual. Came across a site on twitter which compares different Forex software and thought I would let you have a look to see what you think about it http://kl.am/compare – its been hard trying to find decent review sites, but this one seems pretty good actually
[...] employment figures were also an excellent positive surprise, and sent AUD/USD above the resistance line of 0.8950. The number pf employees rose by 40.6K. Economists had a expected a loss of 9.7K jobs. This rise [...]
[...] rate hikes. It raised the question about which country will be next to raise the rates. Later, the Aussie bounced off a resistance line, but the excellent employment figures took it over the top. This week, Stevens will continue to [...]
[...] the Aussie. Further down, 0.8950 serves as a another support line that was a resistance line the Aussie bounced from before climbing [...]
[...] line, serving as a support and resistance line recently. Below that, 0.8950 was a line that the Aussie bounced on before climbing to the current [...]
[...] AUD/USD: Even the Aussie, backed by a strong economy and rising interest rates needs a break. It fell about 200 pips. The fall was cushioned by the 0.8950 support line that served as a resistance line not so long ago. [...]
[...] beginning of the week, and then continued lower. It stopped at the support line of 0.8950, where it stopped not so long ago on its way up. After rising for temporarily on hope, it fell again and closed at [...]
[...] this line, sending it to levels last seen at the beginning of October. 0.8950 then served as a resistance line that Aussie bounced off, before continuing north. This line also served as a support line in 2008, and a resistance line in [...]
[...] outlook, I continue to mark the 0.8950 as the initial and important support line. The Aussie bounced off this line a few weeks ago on the way up. Below that, 0.85 was the previous resistance line, and now serves as [...]
[...] already a major support line, a place where the Aussie made a break under last week, and previously bounced off it. Looking even lower, the area of 0.85 is another major support line. The Aussie was stuck under it [...]
[...] down, a strengthening greenback will meet strong support at 0.8950, a line that served as an important resistance and support line in recent months. Below that, the area of 0.85 also features strong support, as it [...]
[...] down, 0.8950 was tested again this week. On its way up in October, the Aussie bounced off this line. It’s a very strong support line. Further below, 0.85 capped the Aussie during the summer, [...]
[...] support appears at 0.8950, which was a significant line in recent months, and also beforehand. The Aussie bounced off this line during [...]
[...] minor 0.9090 support line, and continued with a total collapse – it lost the 0.8950 support, which was a huge support and resistance line many times in recent [...]
[...] up, 0.8950 is a major resistance line. It worked as a support line and a resistance line many times in the past [...]
[...] first and most important support line is at 0.8950. This was a support and resistance line many times in the past. Further below, 0.88 is a minor support [...]
[...] 0.9210 changed its role and is now a minor support line. Below, 0.9090 is a more significant line that the Aussie floated above. Further below, 0.8950 is an important support line, which worked as both support and resistance many times. [...]