By: Colin Jessup
In a move that mirrors the GBP/USD that I wrote about yesterday, the AUD/USD has found support on a daily zone at 1.9860 and is looking bullish for the moment. This could just be a temporary retracement however as prices are bullish now...and likely to reverse in the Western sessions. Also of interest is that looking at a monthly chart for this pair, we see that prices has retraced 61.8% of Octobers rather bullish range. Overall, the last 5 months have been bearish If the bullish action continues into tomorrow and beyond we should see some resistance at 1.005 and 1.015. If prices resume the bearish tone of the last few days price will need to close below 0.9860 and then will probably find some support at the 09700 level, which also just happens to be just above the yearly 50% level between the 2010 low and the 2011 high. I remain bearish on this pair for now.
Happy Trading!
