AUD/USD Bullish Potential

Colin Jessup

With the less than stellar numbers from the USA's Non Farm Payroll report as well as lower spending numbers from the ISM Manufacturing PMI, the USD is showing some signs of slowing its advances against other major and minor currencies alike. Including the Aussie Dollar. The monthly chart shows us that the pair has reversed from the current price point many times, establishing a 'floor' at this level over the past 8 months. At the close of the Forex markets last week, the AUD/USD was perched just above this floor, a major support level at 0.9650 and sank to 0.9627 during Asian trading hours before showing sings of reversing. When the market closed last week, the Daily candle had printed as a pin bar reversal pattern wicking slightly below this strong support level, so it is highly possible that we will see the AUD/USD trade higher after the Western Markets run their course today. Look for resistance at 0.9660, 0.9700 and 0.9745 with Weekly levels of resistance at 0.9830 and a monthly pivot at 0.9940. Support will be seen at 0.9630 , 0.9602 and 0.9520 intraday with weekly levels of support at 0.9500 and 0.9390. I would not be surprised to see the AUD/USD pull back to parity this week or next.

AUDUSD DAILY 6412

Happy Trading

Colin Jessup
Colin Jessup is certified in both Securities & Technical Analysis from the Canadian Securities Institute, founder of Omegatrader Canada and a Live Trading Coach at TheTradingCanuck.com, a service that calls live trades to captures dozens of pips daily with low drawdown.

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