Back
23 Jan 2015
AUD/USD :Correction faces 1st cluster of offers 0.8035
FXStreet (Bali) - AUD/USD has found some intraday-buying off 0.80 round number, producing a bounce worth 30/35 pips to retest broken-support-turned-resistance at 0.8035, where some selling is now emerging ahead of the China HSBC China PMI.
As noted by Jim Langlands, Founder at FXCharts: "Keep an eye out for today’s HSBC China Flash Mfg PMI. Forecasts call for an improvement to 49.6 from December’s 49.5 reading although this would still indicate a contraction, while a reading coming in below expectations would suggest further weakness for the economy and would pressure AUD/USD further."
Technically, the AUD/USD remains on a 'sell strength' mode, with Thursday's bear leg from 0.8130+ to sub 0.80 being the second impulsive wave down of a possible 3-wave cycle, suggesting that any rebound on China data should find 'grateful' sellers starting at 0.8060 - Jan 22 low - ahead of 0.81/8110 (200-horly EMA/horizontal resistance). On the downside, once below 0.80, not much support is seen until 0.7740.
As noted by Jim Langlands, Founder at FXCharts: "Keep an eye out for today’s HSBC China Flash Mfg PMI. Forecasts call for an improvement to 49.6 from December’s 49.5 reading although this would still indicate a contraction, while a reading coming in below expectations would suggest further weakness for the economy and would pressure AUD/USD further."
Technically, the AUD/USD remains on a 'sell strength' mode, with Thursday's bear leg from 0.8130+ to sub 0.80 being the second impulsive wave down of a possible 3-wave cycle, suggesting that any rebound on China data should find 'grateful' sellers starting at 0.8060 - Jan 22 low - ahead of 0.81/8110 (200-horly EMA/horizontal resistance). On the downside, once below 0.80, not much support is seen until 0.7740.