Revisiting the combination of resistances for AUD/USD

February 23, 2014 in Chart Alert

On February 9, 2014 we had indicated that AUD/USD is up against a combination of resistances. The chart posted in that alert was as follows:

AUD/USD on February 9, 2014

AUD/USD and combinations of expected resistances

Now let’s check the updated chart as on February 23, 2014

AUD/USD finding resistance at the first retracement level

The situation is practically unchanged. The attempt for the second recovery failed at 0.9080. Which clearly indicates that the pair is finding it difficult to break the resistance of the 38.2% retracement of the fall from 0.9758 to 0.8660. This resistance is at 0.9079. The first recovery attempt had failed 6 pips above this and the second one failed at 1 pip above this level.

Practically just above we have the following resistances:

  1. 200-day moving average at 0.9147, which also gets the support of the resistance mentioned in point #2 below.
  2. 0.9163 to 0.9167 range which had proved to be a strong resistance during December 1 to 10, 2013.
  3. 0.9203 to 0.9205 resistance zone of November 22 to 26, 2013, which also coincides with the 50% retracement of the above mentioned fall.

Possibilities of further gains are higher but the combination of the forces keeps us cautious.

Do check the periodic AUD/USD outlook updates also.

1 response to Revisiting the combination of resistances for AUD/USD

  1. On your chart you show resistance on the AUD/USD pair around .9080 region. I have no disagreement with the analysis as presented, however the closing value on my chart was .78378/.78469. any explanation for the difference would be appreciated.

    thanks