AUDUSD has formed a cycle top at 1.0585 on 4-hour chart. Sideways movement in a range between 1.0500 and 1.0585 would likely be seen. Key support is located at the lower line of the price channel, as long as the channel support holds, the price action from 1.0585 is treated as consolidation of the uptrend from 1.0287, and another rise towards 1.0624 (Sep 14 high) could be expected after consolidation
Long Term AUDUSD Analysis indicates EURUSD breaks above 1.3171 resistance, suggesting that the uptrend from 1.2042 has resumed. Further rise could be expected next week, and next target would be at 1.3400 area.
Being contained by 1.0624 (Sep 14 high) resistance, AUDUSD pulls back from 1.0585, suggesting that a cycle top is being formed on 4-hour chart. Range trading between 1.0500 and 1.0585 would likely be seen in a couple of days. As long as the channel support holds, the fall would possibly be consolidation of the uptrend from 1.0287, and another rise to test 1.0624 resistance is still possible.
USDCAD stays below a downward trend line on 4-hour chart, and remains in downtrend from 1.0055, and the fall extends to as low as 0.9844. Further decline could be expected after a minor consolidation, and next target would be at 0.9800 area. Initial resistance is at 0.9880, and the key resistance is located at the downward trend line, only a clear break above the trend line resistance could signal completion of the downtrend.
Shares of small-cap biotech company Acura Pharmaceuticals (ACUR, quote) soared once again on Tuesday after a massive rally in the name during Monday’s trading session. The stock surged 42 percent and closed the day at $3.49. Acura opened the session at $2.49 and traded all the way up to $4.50 at one point in the morning.
The Federal Reserve is expected to announce today an expansion of its asset purchases program that is likely to weaken the valuation of the US dollar versus the Canadian currency. Hopes also continue to rise as talks concerning a fiscal cliff deal are believed to be making progress.
U.S. stock indexes printed small gains yesterday as market participants begin to focus on the two day Federal Reserve meeting. Analysts are looking for policymakers to provide further monetary stimulus – QE4? However, the Fed watchers will also be watching for any signs of deal or lack of deal concerning the fiscal cliff.
AUDUSD is facing the support of the upward trend line on 4-hour chart, a clear break below the trend line support will indicate that the uptrend from 1.0287 has completed at 1.0515 already, then the following downward movement could bring price back to 1.0000 zone. On the upside, as long as the trend line support holds, the fall from 1.0515 could be treated as consolidation of the uptrend, and one more rise to 1.0550 area is still possible.
AUDUSD’s upward movement from 1.0149 extends to as high as 1.0515.
Current market conditions – The Dow Jones (DIA, quote) trading up by 0.22% to 13184.08, S&P 500 (SPY, quote) is trading lower by 0.17% to 1420.47 and the NASDAQ (QQQ, quote) is trading down by 0.41% to 2990.28.
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