The Australian Dollar continues to gain against the Greenback during Asian trading with a high at time of writing of 1.01244. The Bullish Flag formation that we spoke of previously appears to be valid as price has now pushed above the Weekly Pivot at 1.0088 but is hitting resistance at some previous lows from May 6 & 7. If it can push through this resistance, the next hurdle will be the Weekly R1 at 1.0169 and then a consolidation zone at 1.0216 where the pair will most surely pause, if not reverse. However, the market has not yet opened in London, and as many know price often trades in the opposite direction during Asian trading than it does during the higher volume markets in London & New York. If this is the case, we may actually see the bears take over later today and see price fall back below the Weekly Pivot. A daily Pin Bar from this level could easily signal lower prices and gains by the USD which would bring price back down to support at 0.9987 which sits just above the also relevant support level of 0.9954. With investors slowly migrating away from the EURO back to the USD as a 'safe haven' as it has been called, this is entirely possible by the end of the week.
Happy Trading!