Technical Analysis of AUD/USD
TA of AUD/USD
The AUD/USD has been trading in a strong uptrend movement since March 2009 with the pair holding steady at the dizzy highs above the important 1.00 level since the beginning of the year. From a fundamental point of view, demand for the Australian Dollar could remain high, as long as the Chinese economy stays firm. In February the pair traded within the tight range 1.058 – 1.080 and broke below the resistance line at 1.058 at the beginning of March. In the last week of the month the AUD has been losing its strength against the greenback with the pair piercing the 1.04 level again. Whereas in the long term the bias continues to be bullish, it looks like there is enough pressure from the bears at the moment to push the market back to the key 1.00 support level, before the bulls could regain the control. The bearish alignment of the 20 EMA below the 50 EMA on the daily chart further confirms the bearish outlook for the risk sensitive pair. With a downtrend line capping RSI and the MACD signal line flipping below zero on the 4 hour chart, the markets look poised for further downside movement. Considering the strength of the US Dollar Index and its short term bullish outlook, short positions in AUD/USD targeting 1.021 are favoured with resistance level to watch at 1.0583. In the alternative scenario, a break above 1.0583 could open the 1.10 level.
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