By: Colin Jessup
The AUD/USD has managed to stay above weekly Support & resistance at 1.0650, with action during the opening hours remaining Bullish. Last week price broke through support reaching a high of 1.0843 before returning to test the support level once more, making the likelihood of retesting the high pretty good as well. As long as price remains above 1.0700 we could possibly see the Bulls make a run for the 1.100 level, which is also the next major level of resistance and possibly the 9 month high of 1.1079. But, if prices fall below 1.0650 we could retrace to 1.04675 (the 38.2% FIBO level) eventually. There will be support at 1.0600 and 1.0525 along the way and with prices Bullish now, there is a strong possibility they will turn Bearish when London opens. Bear in mind that there are 6 key news items for the Aussie including Home loans, NAB Confidence and Employment Change numbers. I am Bullish on this pair as long as it holds above 1.0650.
Happy Trading!