Forex Technical Update
AUD/USD 4H Chart 8/22/2012 7:55AM EDT
The 4H AUD/USD Chart shows a market that has been trading in a declining channel against a larger rising channel. This week started with an attempt to break above the counter-trend channel. This however failed as the rally during the 8/21 session stalled at 1.0520, below the 1.0530 pivot. As we get into the 8/22 US session, the pair is back to test the risingchannel support.
Note that the RSI in the 4H chart failed to push above 60, which is a sign that the bearish momentum from the decliningchannel is still intact. A break below 40, with price breaking below 1.0410 is a breakout with persistent bearish momentum. However, if the RSI in the 4H chart bounces off 40, it reflects a consolidation momentum, and a sideways market. This keeps the bullish outlook open, with a break above 1.0530 opening up the 1.0613 high.
The daily chart shows the market in a rising channel, with momentum returning to neutral as the RSI regresses to 50. There's no clear trend here, and in such a sideways market, the further price is from the 200-SMA, the more "gravity" it has back toward it. At the moment, the 200-day SMA resides at 1.0290.
AUD/USD Daily Chart 8/22/2012 8:00AM EDT
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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