The AUD/USD is Bullish again during Asian trading and is rapidly approaching both yesterday's high and the 90 day high for the pair at 1.0472. The pair is filling the wick of last week's weekly candle and approaching strong resistance at 1.0450 which the pair spent most of March through to early May testing as resistance, unable to break through. Now, after dipping to a low not seen since October 2010 at 0.9582 on June 1st the pair has rebounded to test this key resistance level once again. Both the Weekly & Monthly R1's meet at this level, differing by only 20 pips at 1.0450 & 1.0470 respectively. Will the Bulls be successful in breaking this key resistance level this time around? If so, there is a 350 pip technical vacuum above which could see the pair pulled higher to retest the year's high at 1.0854 in the weeks ahead. If it cannot break this level, and we see a pull back or reversal once again, the key level of support will once again be the 1.0350 area where the Weekly Pivot now sits. From an intra-day perspective, we see support at 1.0367, 1.0313 1.0236 with similar resistance levels at 1.0444 & 1.04974. While the overall outlook on this pair is strongly Bullish at the moment, the potential for a double top and/or rebound from the 1.0450 area is strong. Traders will be watching this level closely, and I remain cautiously bullish as well.
Happy Trading