Tuesday, October 4, 2011

AUD/USD Near Support - October 4, 2011

This may be the final move down. The pair has reached the bottom of a channel on the daily chart at 0.9413 which could offer support for a bounce. ADX(8) has risen to 57.96 which is high and indicates the market will probably enter a consolidation phase. 

However, there has been no bounce yet and the point and figure targets are pointing at a move down to 0.9340 which is also the base of the Ichimoku cloud. 

It is possible, therefore, that the pair will go down to around 0.9340 before bouncing but a stronger buy signal is required to support a change of trend.

Analysis prepared by:
Joaquin Monfort
Forex4you analyst