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Forex: AUD/USD slightly offered sub-1.0500; outlook remains bullish – V.Bednarik

By FXstreet.com,  January 02, 2013, 06:31:00 PM EDT

FXstreet.com (San Francisco) - The dollar sank against the high-yielding Australian dollar on Wednesday, with the AUD/USD recording an impressive 1% rally, underpinned by U.S. lawmaker's last-minute deal to avert massive tax increases and spending cuts known as the "fiscal cliff". Market participants tend to sell the greenback when risk sentiment is heavy. "The 4 hours chart shows indicators in overbought territory still heading higher, although price needs to settle above 1.0520 area to confirm further gains with 1.0600 now at sight," says Valeria Bednarik, Chief Analyst at FXstreet.com.

The analyst also notes that the short term technical outlook for AUD/USD remains bullish. Last quoted at 1.0495, spot is under slight bear pressure in early Asia. Above the mentioned 1.0520 level, Ms. Bednarik identifies further bullish targets at 1.0550 and 1.0600, while the downside offers support at 1.0485, 1.0440 and 1.0400.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

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