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AUDUSD Technicals: 1/7

by on January 7, 2014 6:01 am GMT
 

The AUDUSD is heading lower after posting a narrowing trade balance in November, largely due to falling imports and flat exports. The trade deficit contracted to $118 million in November, down from $358 million. This was below the $300 trade deficit expected by economists.

Price action is weaker after the more positive data and pushing against support on the 4H chart at .8910. A pullback to .8940 will mark resistance, but further downside at .8885 and .8860 is targeted. If AUDUSD sees a pullback past current price action resistance, the downward trend line will act as resistance nearing .8965. Intraday is currently to the downside.

4H Chart of AUDUSD

4H Chart of AUDUSD

The current candle on the daily chart is shaping up to be a bearish engulfing that could single more downside. Price action was snagged on .8970 which is also the 20 EMA. The next level of support can be found at .8885, or the first intraday target, while the secondary level of daily resistance is at .8840, slightly outside the second intraday target.

1D Chart of AUDUSD

1D Chart of AUDUSD