FXstreet.com (Barcelona) - The AUD/USD is building up a behavioural pattern with the 20-EMA on the 30m chart. One that some traders may have spotted to cleverly capitalize on the Aussie/US Dollar bear run.
After the technical breakout of 1.0485 static support - preceded by the first touch of the 30m 20-EMA at 1.0530 - the par sell off was halted at round 1.0450, creating a series of semi-intraday lows at 1.0455 and in the process an upleg just 2 pips short from kissing the 30m 20-EMA, before sellers stepped in.
Following the modest downside resumption of the bear trend to new lows at 1.0438 in Asia, a bounce has, again, met with the 30m 20-EMA at 1.0455, causing the price to revisit short term established support at 1.0443.
So what is the 30m 20-EMA communicating? For the sellers, it essentially reassures them they are in control, as they try to compress prices lower in order achieve further gains, with 1.04 possibly as a logical target in mind. For buyers, it shows that unless the 30m 20-EMA is regained to the upside and holds as dynamic support afterwards, so as to slowly recover ground, entering blindly at current lows carries some large risk.
After the technical breakout of 1.0485 static support - preceded by the first touch of the 30m 20-EMA at 1.0530 - the par sell off was halted at round 1.0450, creating a series of semi-intraday lows at 1.0455 and in the process an upleg just 2 pips short from kissing the 30m 20-EMA, before sellers stepped in.
Following the modest downside resumption of the bear trend to new lows at 1.0438 in Asia, a bounce has, again, met with the 30m 20-EMA at 1.0455, causing the price to revisit short term established support at 1.0443.
So what is the 30m 20-EMA communicating? For the sellers, it essentially reassures them they are in control, as they try to compress prices lower in order achieve further gains, with 1.04 possibly as a logical target in mind. For buyers, it shows that unless the 30m 20-EMA is regained to the upside and holds as dynamic support afterwards, so as to slowly recover ground, entering blindly at current lows carries some large risk.
