Tuesday, 7 February 2012

AUD/USD rises through resistance

The AUD/USD has risen through potential resistance at the September and October highs, as the Reserve Bank confounded the pundits with the decision to leave its key interest rate unchanged. Failing an immediate reversal back below the resistance level, the market is likely to test the July 2011 high of 1.1080. If that level is beaten, a target of above 1.20 comes in to play.

EUR/USD and moving averages flash classic buy signal

After wedging in to January's low, the EUR/USD has rallied enough that the moving averages are indicating an up trend at this time frame. Further, the market has tested and respected the rising 18 day moving average. None of the three key levels I mentioned in last night's post have been breached, and while that remains the case, the trend is up and the 1.42 target is in play.

ASX 200 and AUD/USD grind higher overnight

No time for charts this morning, but so far yesterday's questions Double top on the ASX 200? and AUD/USD turning down at resistance? have both been answered with a No, or perhaps for the latter question a Not Yet.

So, all eyes are on the RBA decision this arvo. Both markets are close enough to nearby overhead resistance that volatility associated with the decision could see them push through. Or not. Certainly a break above 1.08 for the AUD/USD would attract fresh bids. We'll have to wait and see.