AUDUSD, like many other pairs, is currently testing a key technical level on the daily chart.  For this pair the key price point is the 1.0600 where we there have been repeated failures over the past 6 months.  This pattern is clearly defined by isolated pivot highs with the most recent occurring on 16th Jan and prior to that one on 12th Dec 2012.

In today's trading the pair are once again attacking this level and at time of writing trading at 1.0559.  Any breach of the 1.060 level will then provide a solid platform and spring board to attack 1.0800 level in due course.  Volumes on the daily chart remain below average and in the past 2/3 days sellers have returned to the market.

Also note that the daily trend has flattened but still remains bullish and with the three day trend also bullish the prospects remain in place for a further move higher provided there is a firm break and hold of the 1.0600 price point.

From a fundamental perspective China's solid GDP number can only benefit the Australian Dollar and in addition more evidence can be found in the commodity markets where prices of iron ore and coking coal have rebounded.  A small, but positive sign for both China and the Australian Dollar.

Views: 97

Comment by Anna Coulling on January 24, 2013 at 2:29pm

good call - with two more failures at the 1.058 yesterday & day before. On daily chart buying vols falling signaling weakness so no surprise to see today's fall - but there is good support at current level of 1.0465.

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