Wednesday September 22, 2010 - 19:42:19 GMT
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Aussie Dollar Forming Reversal Top
After hovering on both side of an
uptrending Gann angle at .9570 today, the Aussie Dollar finally succumbed to
selling pressure, triggering a break from its high and putting it in a position
to form a daily closing price reversal top.
Weakness in U.S. equity markets is to blame for
today break in the AUD USD. Once it became clear that the stock market did not
have enough buying power to regain yesterdayâ€™s high, demand for higher risk
assets fell, triggering a profit-taking break in the Australian Dollar.
Although the Australian economy is much
stronger than the U.S.
economy at this time and its central bank has been raising interest rates while
the Fed is likely to begin another round of stimulus, investors are concerned
that the faltering U.S.
economy may derail the entire global recovery. This concern is encouraging
bullish Aussie Dollar traders to take a little off the top while traders
reassess their risk parameters.
Based on the main range of .8770 to .9599,
a closing price reversal top will set up a possible correction back to .9184
over the short-run.
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