Start Trading Now Get Started
Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

AUD/USD Daily Outlook Jan. 9, 2012

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

By: Christopher Lewis

AUD/USD fell on Friday as the Dollar continues to pick up steam. The pair has recently seen a surge as the Aussie has enjoyed a bit of a safety status as it offers a bit of yield in a world that has little. The pair however, is tied to the commodity markets as well – something that could hinder it going forward.

The commodity markets are going to be a mixed bag by the looks of things. The Dollar is rising, and in certain markets that can be very bearish. The pair is often sensitive to headline risks as well, and as long as we find ourselves in the current situations, this will always be a threat to the health of the AUD/USD markets.

The pair has been sideways with an upwards bias lately, but there is a gap from November that has yet to be filled. This almost never happens in the Forex markets, and it is because of that fact that the pair could also see a fall. The gap being filled would have the market down at the 0.74 level and in this environment – it isn’t that hard to imagine some headline coming out that sends everyone into the US Treasury markets.

The Grind

The commodity markets will grind a lot this year. Traders will find themselves looking for something to store value as many governments around the world will either insolvent, or printing money. The pair has been a bit slow to move lately, which is something unlike the usual behavior.

AUD/USD Daily 1/9/12

The 1.05 level above looks resistive at this point, and although the parity level is below, it is only somewhat important. The parity level has been seen several times, and every time this happens it will diminish the psychological effect on the market. The gap at 0.74 to 0.75 will be the ultimate support, and this pair should continue to follow various other markets such as gold. With this in mind, we could see a slow grind higher, but in a few weeks we should see a reversal as a break of 1.05 in this kind of environment seems highly unlikely. The braking below Friday’s low would be a sell signal as well. I am waiting to see this market rise a bit before selling unless we get sub 1.02 in the pair.

Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Most Visited Forex Broker Reviews