By: Colin Jessup
The AUD/USD or 'Pacific Peso' as it is known to some is approaching a critical resistance level. The level at 1.05 has been a hurdle for the pair both as support and as resistance since early April of this year. At the end of March the pair struggled to clear 1.05 and hold above it, then did not successfully break below that same level until August when it fell all the way to the 0.9930 level. Trading on both sides of the zone since price is once again approaching 1.050. The Bulls advance was halted on Monday by this zone, when price fell for 2 days and now the Bulls are trying again.
I think it is highly probable that we will retreat once again from this zone in the days to come. But until the Bears resume control we should see resistance at 1.050, 1.055 and 1.063...if we break above 1.06 a test of the September 1 high, 1.076 is quite likely.
If the Bears do take the reigns from the Bulls, look for support at 1.035, 1.004 and 0.9930. 0.9330 may take some time to reach and the psychological zone at parity is always a factor.
