AUD/USD Classical Technical Report 05.09
AUD/USD: The latest sharp setbacks off of the post float record highs just over 1.1000 suggest that some form of a top could now be in place. Both the 10/20-Day SMAs have been easily breached and next key support now comes in by 1.0440. It is worth noting that weekly studies show the formation of a bearish outside week, and this could further suggest that a material top is in place over 1.1000. However, confirmation will only be given on a break back below 1.0535. From here, look for any intraday rallies to be well capped on a close basis below the 10-Day SMA, which currently comes in around 1.0800, with only a daily close back above 1.0850 negating bearish outlook.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel's reports in a more timely fashion, e-mail firstname.lastname@example.org and you will be added to the "distribution" list.
If you wish to discuss this topic or any other feel free to visit our Forum page
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.