By: Mike Kulej
In spite of recent financial tremors, the Australian Dollar held up remarkably well. Very often the Aussie, and the other commodity currencies, fall victims to global economic uncertainty. Such was the case in 2008 and could be again if the outlook for a recovery gets worse.
For now, the AUD/USD is still in an uptrend, as judged on basis of technical analysis. The price is above the 100 SMA and the up trendline, too. Last week, this pair rebounded from a conjunction of both of these lines, finding a support at 0.8770. However, it remains very close to these two supports, increasing the risk of depreciation. A break under the up trendline and the 100 SMA will most likely mean an end to the bullish trend.
The ADX indicator changed direction few weeks, suggesting the uptrend has either run its course or settled into a consolidation zone. The uptrend, even though still present, is not as strong as it once was. Right now, it is supported only by a trendline.
