04.07.201405:03 Forex Analysis & Reviews: Technical Analysis of AUD/USD for July 04, 2014

Long-term review

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AUD/USD

The Aussie dollar was beaten very badly. The US jobs figures and the RBA Governor concerns regarding the overvalued Aussie dollar made a very bad move in yesterday's session which plunged into a weekly low. The pair exactly took support at an upper end of the trend line. The pair chopped the 50 days Sma and well managed to close above it. Today in Asia's session, it is trading at 0.9347 just above the 50 days Sma. If the pair closes below the 50 days Sma 0.9338, it can extend its fall up to 0.9318 and 9288 (200 days Sma). On the upside, the pair has strong resistance at 0.9397 (20 D Sma)above 0.9443 and 0.95, the pair favors selling on the rallies.

For an intraday session, the pair is trading below the hourly moving averages. In yesterday's session we gave an alert at 0.9433, sells at 0.9428 made a low at 0.9329, exactly 100 pips. We are still in a sell mode. The pair prepared a huge distribution pattern in the hourly chart. The pair resistance is at 0.9362, 0.9381 and 0.94. The hourly momentum oscillators are indicating oversold levels, so we expect a small pullback. Sellers can take this opportunity to sell again for 0.9320, 0.93 and 0.9270. Until the pair trades below 0.94, bears will have an upper hand. The pair has been making lower high's from 12 hours.

Buy above 0.9381 target 0.94 and 0.9420

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