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27 Mar 2015
AUD/USD rebound might end near 0.8020 - SG
FXStreet (Barcelona) - Technical Analysts at Societe Generale suggest that AUD/USD might make a run for 0.8020 before resuming its bearish trend.
Key Quotes
“AUD/USD confirmed a head-and-shoulder pattern last year and is extending the downtrend. The monthly RSI has broken below a multi-year trend line support, suggesting continued weakness.”
“In the short term though, the pair has recovered after testing support at 0.7590 and has now broken above a multi-month descending channel.”
“The daily RSI has also broken above a multi-month trend line resistance, giving credence to a price break. Thus, a recovery towards 0.8020, the 23.6% retracement from last July, is possible.”
“However, such a rebound is likely corrective in nature, and AUD/USD should eventually drift towards the channel bottom at 0.72.”
Key Quotes
“AUD/USD confirmed a head-and-shoulder pattern last year and is extending the downtrend. The monthly RSI has broken below a multi-year trend line support, suggesting continued weakness.”
“In the short term though, the pair has recovered after testing support at 0.7590 and has now broken above a multi-month descending channel.”
“The daily RSI has also broken above a multi-month trend line resistance, giving credence to a price break. Thus, a recovery towards 0.8020, the 23.6% retracement from last July, is possible.”
“However, such a rebound is likely corrective in nature, and AUD/USD should eventually drift towards the channel bottom at 0.72.”