Monday, October 3, 2011

AUD/USD Consolidation Likely - October 3, 2011

The aussie has carved out a low at around the 0.9600 level. Indications show there may be a rebound or an extended consolidation. Momentum is oversold and there is an inverted H&S pattern on MACD; ADX(8) has exceeded the 50 mark which indicates directional movement will probably give way to sideways movement; there was a TD sequential buy signal 8hr ago and the point & figure charts have reached their downside targets. 

It will probably continue to fall to the bottom of the range at 0.9595 and then rally back up to the top at 0.9660

Analysis prepared by:
Joaquin Monfort
Forex4you analyst