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Thursday, 8 August 2013

AUDUSD - Is this just another pullback, just like all the other times?

We had a very good recovery of the currency rallying back 250points, but has anything really changed.  It is worth mentioning and highlighting the relationship with the price action to the 20 Day SMA and EMA. They've previously its acted as a nice resistance on the currency, and struggled to hold its gains above this level the days following.  We're approaching the potential (yet to be 3point confirmed) downtrend line.





Looks like they're might be a battle ahead, but given how the indicators are positions at the minute you would have to side with the bears still.  If the market breaks about the 0.9300 level, could be worth going long and riding the market up to 0.9600, otherwise this could be another good opportunity to get short the market and target its previous low at 0.8848, with a trailing stop incase the market keep on going.

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