Powered By

Breaking News

Educational Analysis: Using different technical catalysts to sell the AUDUSD pair

Publish Date19/12/2012 08:21:16 PM

Last Update20/12/2012 08:14:27 AM

Educational Analysis: Using different technical catalysts to sell the AUDUSD pair

 

 

The weekly chart of the AUDUSD pair offers a short opportunity for short-term traders whereas the price couldn’t breach the upper line (resistance) connecting the movements of the following peaks:

  • All-time recorded in July 2011 at 1.1080
  • February 2012 high at 1.0856
  • The peak recorded on December 12 at 1.0586

 

 

 

However, failure to breach the aforesaid resistance isn’t the only catalyst that actuated us to suggest bearish direction, but we can see how the pair has received additional bearish impetus from touching the upper line of Keltner channel which has been recast as a very solid resistance and that might bring notable correction over upcoming sessions despite the year-end atmosphere.

Click on the image for a larger view

What is Keltner channel?

The Keltner channel is a moving average band indicator with upper and lower bands that adapt to changes in volatility by using the average true range. Generally, the Keltner Channel is used to  signal price breakouts, show trend, and give overbought and oversold readings,  and on our AUD/USD chart it reflects an obvious overbought condition.

CCI 14 confirms this overbought case and potential targets for bears reside at 1.0275 boundaries.

Comments

Member Account Required
You must be registered as a member of the forums and logged into your account to post messages. If you do not have a member account, please Sign In or Register.
Markets
United States
Europe
Asia Pacific
Calendars
Economic Calendar
Holiday Calendar
ECB Calendar
Feds Calendar
BoE Calendar
Boj Calendar
News
Top News
FX Updates
Market News
Stocks
Commodities
Global Highlights
Political News
Around the World
Analysis
Opinions
Studies
At A Glance & Video Commentaries
Market Pulse
Community
Forum
Chat
Blogs
Press Releases
icn.com
About Us
Advertising
Contact Us
Privacy Policy
Terms of Services

Risk Disclaimer : All information on this page is subject to change. The use of this website constitutes acceptance of our Privacy Policy and Terms of Service. Please read our Privacy Policy, Risk Disclaimer, Terms of Services and all legal disclaimers. Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone.


Opinions expressed at ICN.com are those of the individual authors and do not necessarily represent the opinion of ICN.com or its management, shareholders, affiliates and subsidiaries. ICN.com has not verified the accuracy of any claim or statement made by any independent writer and is reserved as their own and ICN.com is not accountable for their input. Any opinions, news, research, analysis, prices or other information contained on this website, by ICN.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. ICN.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market prices, meaning prices are indicative and not appropriate for trading purposes. ICN.com does not bear any responsibility for any trading losses you might incur as a result of using this data.


©2012 ICN.COM. ALL RIGHTS RESERVED