Weekly Pivot Point: 1.0561.
Weekly Technical levels (August 13 - 17, 2012):
R3: 1.0742
R2: 1.0677
R1: 1.0626
PP: 1.0561
S1: 1.0510
S2: 1.0445
S3: 1.0394
Overview:
The AUD/USD pair has turbulently reached the level of 1.0573 moving from the 1.0475 point. Yesterday's deals were closed at the level of 1.0516. Two weeks ago the price was above 23.6% of Fibonacci retracement level. It is necessary to mention that the price formed a strong support level at 1.0475 which is located between 23.8% of Fibonacci retracement level and 38.2% on the Daily chart. Thus, the market is likely to show the signs of bullish movement again indicating a bullish tendency from the level of 1.0475 with targets located near the strong resistance level at 1.0570. Meanwhile, the bulls were forced to go back to this level of 1.0603, forming a strong resistance at the point of 1.0603 indicating a bearish opportunity below the resistance level. This can be considered as a good sign for sell deals higher than 1.0603 with 1.0555 and 1.0503 seen as targets.
Trading Recommendations:
According to the previous events, the price is still located between 1.0477 and 1.0544.
- Buy deals above 1.0475 with targets near 1.0573.
- Sell deals below 1.0603 for the further development of the downtrend in order to continue the bearish movement towards 1.0555 and 1.0503 levels.
Observation (s):
- Please consider the market volatility before investing, as the sight price may have already been reached and scenarios cancelled.
- Strong Support: 1.0475.
- Strong Resistance: 1.0603.
If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.
