By: Colin Jessup
The Aussie seems to be stuck on the daily S/R zone around 1.0326 and has not closed below this level since October 20th. While traders are trying to push prices lower towards the end of the Asian session, there is a strong possibility that this zone might hold and we will see prices trade higher in the UK & US sessions later today. The last 3 daily candles are all hammer candles with long-ish tails that push through the zone, but cannot hold prices lower. The daily Moving Average is also providing support at this level with the 62 EMA ringing in at 1.03065. In order for the Bears to push prices lower, we will need to break both of the previously mentioned support levels, and then we may see a push for the weekly S/R zone at 1.0171. I remain cautiously bullish on this pair however and will be looking more towards resistance at 1.0450 and then price could find its way up to the next weekly zone at 1.0630 pretty rapidly. As i mentioned in a previous article on this pair, we have bounced from the 38.2% retracement level at 1.02285, which if prices drop again could be the first target for the pair.
Happy Trading!
