Wednesday May 19, 2010 - 21:17:38 GMT
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Fxtimes: Daily Technical Update: Aussie and Kiwi Tumble
Daily Technical Update
May 19, 2010
NZD/USD: Slide Continues After Breakout
- Weekly: Following up with yesterdayâ€™s NZD/USD update, the decline is accelerating after the breakout and a pullback.
- The market is now reaching the lower bound of its a declining channel support, near the 38.2% retracement area. Do not expect support here to hold.
- But if there is any bounce, anticipate a very minor one, and a continuation towards 0.6280 (50% retracement).
AUD/USD: Support Broken; Looking at Retracement Targets
- Weekly: The Australian governmentâ€™s tightening policies and Chinaâ€™s tightening policies as well are hurting the Aussie, and I suspect similar dynamics with the Kiwi.
- The AUD/USD broke below a tripple top base and is about to test the SMA-200.
- This is coincident with 38.2% retracement at the 0.82/0.83 area.
- A break below this suggests further decline towards the 0.78 area, 50% retracement area.
- A pullback could occur as the market tests 38.2% retracement and SMA 200.
- This is not necessarily needed as a confirmation because the heaviness of these drops are overwhelming.
- A pullback does offer the market a chance to breathe and may provide better reward to risk ratio for those with the bearish outlook.
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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