Forex Technical Update
AUD/USD 4H Chart 10/2/2012 2:35PM EDT
Previous: AUD/USD – Momentum Stuck in Sideways Gear (9/28)
RBA cuts rate: The AUD/USD fell sharply over the 10/2 Asian-European session after the Reserve Bank of Australia lower its official cash rate from 3..50% to 3.25%. A rate cut was expected sometime later this year, or early next year, but the market did not expect it to be during this meeting.
Sell-off reaction: he sharp sell-off immediately following the RBA announcement fell to 1.03 where it stalled during early US session. However, this was a very brief stay, before the market fell towards 1.0250 towards the latter part of the 10/2 session.
The RSI has tagged 30, a sign of bearish momentum. The next level the AUD/USD market will be focused on now is the 1.02 psychological handle, and the 1.0166 September low and support pivot.
NZD/USD 4H Chart 2:50PM EDT 10/2/2012
Previous: NZD/USD Backs off Old Consolidation Resistance (9/24)
Strong NZD: The New Zealand dollar has been much more resilient of the two neighboring currencies. The Kiwi (NZD/USD) has been in a sideways type of consolidation, failing to break above 0.8355 for a new high. On the other hand, the bears have not shown strength as the 4H RSI reading held above 40, showing maintenance of the bullish momentum. Price right now is in the middle of this short-term sideways range.
Topping? If price continues to fall below 0.8180 however, it would be able to establish a double top. This price action accompanied with the RSI falling below 40 in the 4H chart would focus the NZD/USD market toward a key rising trendline, which would coincides roughly with the breakout projection to the 0.8010-0.8015 area.
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.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
