Thursday, July 21, 2011

AUD/USD: Breakout Expected - 21 July 2011

The aussie has rolled over after reaching key resistance levels at the ceiling of the range. It will probably continue lower, reaching the 1.0500s eventually, with 1.0560/70 as a possible target, given the mixture of support there. ADX is at all-time lows, however, now giving a rare 11.76 reading. 

This indicates a high probability of some strong directional movement, although it is still not clear yet in which direction. A move higher is also possible, however, with 1.0800 as an I initial target.

Analysis prepared by:
Joaquin Monfort
Forex4you analyst