Wednesday, July 20, 2011

AUD/USD: Rising to Resistance - 20 July 2011

The aussie has risen as anticipated and successfully reached the 1.0750 level. It has started consolidating and there is a possibility of a break out in either direction. 

Sticking with yesterday's analysis we would expect a breakdown from here, to 1.0520, although there are no weaknesses yet so it could equally move a little higher up to the major resistance line at 1.0785. 

This pair is ripe for a breakout from the range it has been in for the last two months. The extremely low ADX of 13.15 indicates a very high likelihood of some imminent directional movement.

Analysis prepared by:
Joaquin Monfort
Forex4you analyst