By: Colin Jessup
The Aussie has been struggling to break and hold above resistance at 1.0630 and as such has basically been sideways as a result. There is clear support at 1.05800 with 3 of the last 4 daily bars being bullish, and unable to break below this level. The monthly candle has closed at 1.06198, just shy of the major resistance level that is holding the bulls in check at 1.0630. Price is trading well above the DMA at 1.0305 with the indicator pointing towards possible higher prices, if we break through resistance. The bulls will most likely try to break this level again in the London or New York sessions with the next resistance coming in the form of the October 27, 2011 high at 1.07521. If the Bulls successfully breach these levels we will probably be heading for a re-test of the 6 month high at 1.108 a little later. To the downside, the bears will be supported by 1.0500 and 1.038 longer term. Although today's candle closed higher than opening and created a bullish candle, the struggle between the bears & the bulls was close, indicating a breakout coming soon. My money will be on the Bulls, but not until we breach 1.075.
Happy Trading!
