FX.co ★ AUD/USD technical analysis for August 29, 2013

Overview:

AUD/USD: According to the previous events, the price has still been trapped between 0.8950 and 0.9000. Therefore, the first step is to wait for a period of tight sideways market before breakouts. Then, probably, the market is going to start showing bearish signs. In other words, it will be a good sign to sell below 0.9200 (it should be noted, at the level of 0.92 a double top has been forming for five days) with the first target at 0.8975 and the price will climb towards 0.8900. However, if the pair fails to break 0.8903, the market will indicate bearish opportunity above 0.8903, then the level will really act as strong support. It will be a good sign to buy above 0.8903 with the first target at 0.8985 and it will call for an uptrend in order to continue bullish movement towards 0.9050.