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24 Jun 2013
AUD/USD builds 1h range, watch 0.9150 barrier
FXstreet.com (Barcelona) - The AUD/USD is showing lack of vitality to move off its recent lows post inter-bank trading, with the rate stuck at 0.9220, with trading developing within a non-volatile 0.9260-0.9160 ranging environment.
Be cautious to call for bottoms
The ongoing liquidation of the Australian Dollar, with speculators increasing its net short positioning to 64K vs 63K prior, coupled with the fact that the AUD/USD had its worst week of losses since Sept 2011, suggests that the market remains overly bearish.
Watch for barrier at 0.9150
As mentioned int he first paragraph, the AUD/USD is developing within a 1-hour ranging environment, with the need to break either edge to provide further clues on next direction.
According to Sean Lee, Founder at FXWW, "There is a barrier reported at .9150 which is likely to be heavily defended and there is last week’s low just ahead of there to provide some technical support."
Lee reminds us that Hedge funds continue active selling on any rallies towards .9250, and his suggestion is "to play the edges of this range and a clean break either way should be good for an 80/100 pip move" Lee adds.
Be cautious to call for bottoms
The ongoing liquidation of the Australian Dollar, with speculators increasing its net short positioning to 64K vs 63K prior, coupled with the fact that the AUD/USD had its worst week of losses since Sept 2011, suggests that the market remains overly bearish.
Watch for barrier at 0.9150
As mentioned int he first paragraph, the AUD/USD is developing within a 1-hour ranging environment, with the need to break either edge to provide further clues on next direction.
According to Sean Lee, Founder at FXWW, "There is a barrier reported at .9150 which is likely to be heavily defended and there is last week’s low just ahead of there to provide some technical support."
Lee reminds us that Hedge funds continue active selling on any rallies towards .9250, and his suggestion is "to play the edges of this range and a clean break either way should be good for an 80/100 pip move" Lee adds.