AUD bulls take control – FXStreet

FXStreet (Barcelona) - Ivan Delgado, Head of Asian Editors at FXStreet comments on he AUD/USD moves pointing out that following a period of consolidation inside the daily cloud, bulls managed to break back above the top of the cloud + kijun sen, with price now confronted with a key descending trendline coming off Oct 2013 high.

Key quotes

“A break above this dynamic resistance is needed to expose offers at 0.94 and beyond. The cloud will remain thick for the next 2 weeks, suggesting that any setback should continue to find solid dip buying interest.”

“Intraday, the bullish momentum in the AUD becomes more evident, as price holds above the tenkan, while both the kijun and the cloud remain far behind, a communication that AUD enters Tuesday's Asian session keeping a very healthy bullish tone.”

“While price trades above the kijun/tenkan lines, the first tentative signs of bears stepping in are emerging, with the tenkan just crossing below the kijun, although it occurs in a context of very bullish price action in the last few days, which coupled with a rising thick cloud, it makes it look as though the prospects for downside setbacks will be limited.”