Wednesday, August 17, 2011

AUD/USD Still Rising - August 17, 2011

The aussie is still rising in the counter-trend rally which began last week. Whilst the larger down-trend is expected to resume eventually, there is no sign of weakness yet, so the short term trend remains up – although it does look a little over extended and has broken a trendline which is also currently acting as resistance. 

The next significant level of resistance is at 1.0650 where several moving averages converge, the 61.8% fibonacci line sits and the top of the Ichimoku cloud. A fall back down would be expected to reach the support shelf at 1.0400 initially. 

Analysis prepared by:
Joaquin Monfort
Forex4you analyst