By: Colin Jessup
The AUD/USD pair is slowly but surely pulling back to the previous resistance level at 1.0675, and is hovering around the 3 month highs at roughly 1.075. The Aussie has found heavy support & resistance at this level since first encountering it in April 2011. Price this week has reached as high as 1.0843, just shy of the weekly R1 at 1.0865 and now appears that it could retrace to 1.0695 or 1.0598 before resuming its Bullish run and another attempt to test the all time high at 1.10796, which was reached on July 27, 2011. If we don't break 1.0700, look for a bullish candle to follow on the daily chart. If we do break and close below 1.0700, I will expect sentiment to turn bearish and a re-test of 1.05 won't be out of the question. For Intraday traders, be mindful of support at 1.0320, the Daily Moving Average if we remain bearish, and bullish intraday traders should keep 1.0750 and 1.0082 (the week's high). I am neutral on this pair, but only in anticipation of going long if we get a nice bounce from 1.0700.
Happy Trading!