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23 May 2014
AUD/USD: Early Tokyo supply, 0.9216 the lowest
FXStreet (Bali) - AUD/USD came under pressure at the Tokyo open, initially bouncing to 0.9235 mainly on AUD/JPY positive flows, but heavy offers took the price over 20 pips lower to a session low of 0.9216.
The steady selling in the Aussie since the last European open, which follows a much stronger-than-expected China HSBC PMI is a clear communication by market participants that sentiment has turned clearly bearish, as not even such a distinctively positive Chinese can turn around the bearish tide that has taken over the pair since its topside failure at 0.94 on May 14.
According to Nadia Simmons, Strategist at Sunshine Profits: "Despite his improvement, AUD/USD didn’t hold gained levels and reversed. This show of weakness provides us with bearish implications and suggests that Thursday's upswing was nothing more than a verification of the breakdown. If this is the case, we’ll see another attempt to move lower and the initial downside target will be the May low. If this support level doesn’t stop the current correction, we will likely see a drop to the 38.2% Fibonacci retracement based on the entire Jan.-Apr. rally (around 0.9154)."
The steady selling in the Aussie since the last European open, which follows a much stronger-than-expected China HSBC PMI is a clear communication by market participants that sentiment has turned clearly bearish, as not even such a distinctively positive Chinese can turn around the bearish tide that has taken over the pair since its topside failure at 0.94 on May 14.
According to Nadia Simmons, Strategist at Sunshine Profits: "Despite his improvement, AUD/USD didn’t hold gained levels and reversed. This show of weakness provides us with bearish implications and suggests that Thursday's upswing was nothing more than a verification of the breakdown. If this is the case, we’ll see another attempt to move lower and the initial downside target will be the May low. If this support level doesn’t stop the current correction, we will likely see a drop to the 38.2% Fibonacci retracement based on the entire Jan.-Apr. rally (around 0.9154)."