Wednesday, November 3, 2010

Lack of momentum (2010-11-03 AUD analysis)

Well after Reserve Bank of Australia announced an increase of 0.25% in interest rate, AUD did not rise as normal. It might be because of its lack of momentum. Let's look at its 4-Hour chart.



After reaching new high of 1.0023, AUD fell back below 1.0 level. We can see from the chart that there are two resisting power at this level, the red uptrend line as well as the resistant zone by the last high.

MACD and EMA gives a bearish cross, telling us that AUD would probably fall afterwards. ADX is only 22, which means that the upwards trend is not that strong, although ADX is pointing upwards.

Aussie would probably end its crazy surge and start retreating.

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