By: Colin Jessup
The Pacific Peso or AUD/USD is sitting on a weekly Support/Resistance zone at 1.0152 after closing last week with a potential reversal candle that broke the next resistance zone at 1.0383 by only 3 pips and then fell to its current level of 1.0155 (at time of writing). Price has struggled at this level many times, with both the bears & the bulls finding it a hard level to crack.
With the overall attitude in the markets, there is a good chance this pair will fall further, but as it is falling during the Asian session it could actually turn bullish when the London or New York markets open. If the fall does stop at this level and price turns bullish, look for resistance at 1.0210 and 1.0300 before heading back up to 1.0380.
If the zone breaks, and we fall below 1.0150, support will probably be seen at 1.0090 and 0.9985 before hitting the daily zone at 0.9868. Price is also currently below the Daily Moving Average at 1.0168, which once broken can often signal a further breach. That said, it can also act as strong support &resistance and we are approaching the weekly moving average at 1.0113, so we will need to watch this level closely.
I am bearish on this pair, especially if we close below 1.0100.
Happy Trading!