By: Colin Jessup
The AUD/USD produced a nice bullish engulfing candle off of daily support at 1.0690 yesterday, but it is not enough to break out of the range that the pair has been trapped in for the past month. The pair traded to a high of 1.08432 on February 08, 2012 and has fallen as low as 1.05962 since then, but has basically been sideways. The 'Pacific Peso' will need to break either above 1.0844 or lower than 1.0596 before it can resume trending, whether it be Bullish or Bearish. Since the open of the Asian session through to time of writing at about 1 hour into the London session the pair has only moved a total of 36 pips, but did break yesterdays high by 3 pips. With the Weekly R1 at 1.0813 and a weekly support zone below at 1.0700 this pair remains mostly neutral. Markets have allot to digest this week with information flowing all day regarding the EU and the Greece Bailout, and the Non Farm Payroll on Friday out of the USA. It is unlikely that this pair will break out this week, but not impossible.
Happy Trading!