AUD/USD — Stressed but markets are responding well

As we reported yesterday, we expected a stressful market reaction to the terrorist attack in Australia. Markets are by nature speculative and ‘finicky’ at times. As the market investors see risk in a country the local currency can be affected by being sold. We saw this happenning yesterday. At the same time we saw that the markets were holding on and not ‘destroying’ the currency. Here is the daily from today:

We see that the AUD/USD is holding at around 0.8205 and the support around 0.81665 with a resistance at 0.84275. The actual movement is at the moving average showing that the pressure is bearish but overall not breaking new ground today. Looking at the hourly we see a different picture:

Here we see that the bollinger bands are being pushed in the upper side. This shows that in the short to midterm especially today investors are reacting positively to the terrorist attack and supporting the Auzzie against the USD. We recommend that investors are cautious in positions, but there is potential for bullish pattern to emerge in this crisis. Let us wait and see. Our blessings and prayers to the injured, and to the people of Australia.