Monday, November 29, 2010

Forex: AUD/USD opens higher after sharp fall

Sun, Nov 28 2010, 23:28 GMT

FXstreet.com (Córdoba) - The Aussie has started a fresh week slightly higher after the strong slump seen on Friday. After closing in NY at the 0.9640 zone, AUD/USD opened this Monday at 0.9682, gapping 40 pips to the upside.

However, the pair has retreated somewhat within the first trading hours and currently is trading at the 0.9670 zone, where the 20-hour SMA is acting as dynamic support.

From a technical perspective, Nial Fuller, analyst at Learn To Trade The Market, commented, "The AUDUSD is developing signs of at least a short-term top, we can see the 8 and 21 day emas have crossed lower and price has broken and closed below support near 0.9700".

"We would look to sell counter-trend rallies on strength in this market pending confirmation by bearish price action setups, support levels come near 0.9400 and 0.9200", Fuller added.

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