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1 Aug 2014
AUD/USD typically fares poorly in August - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that a close-up look at the weekly candle patterns in AUD/USD reveals a couple of interesting things from a technical perspective.
Key Quotes:
“Firstly, the big weekly key reversal signal from late June the basic reason for our negative view of the AUD’s technical prognosis remains intact. In broad terms, we have to expect a sizeable correction (at least) of this year’s AUD rally from the upper 0.86 area as a result”.
“Secondly, despite the late week rebound in spot, the AUD is still heading for its lowest weekly close since late May. This should shift trend followers a little more materially towards a bearish view of the AUD’s technical outlook and drive up selling interest on rallies”.
“A final factor not related to the charts specifically is the fact that the AUD typically fares quite poorly in August from a seasonal perspective. Everything we see at the moment points to a repeat this year”.
Key Quotes:
“Firstly, the big weekly key reversal signal from late June the basic reason for our negative view of the AUD’s technical prognosis remains intact. In broad terms, we have to expect a sizeable correction (at least) of this year’s AUD rally from the upper 0.86 area as a result”.
“Secondly, despite the late week rebound in spot, the AUD is still heading for its lowest weekly close since late May. This should shift trend followers a little more materially towards a bearish view of the AUD’s technical outlook and drive up selling interest on rallies”.
“A final factor not related to the charts specifically is the fact that the AUD typically fares quite poorly in August from a seasonal perspective. Everything we see at the moment points to a repeat this year”.