July 30, 2008 04:28

Technical Analysis – AUD/USD Bearish but Strong Support

Posted In: Technical Analysis
By:

7-30-08

3:18a GMT – AUD/USD pair remains bearish on both the daily, 4H and 60M price charts. However there is strong intraday support at 0.9575 that I expect to stall a drop below. 60M RSI is heavily oversold and has just crossed above 30 indicating a bounce and the RSI on the 4H charts is showing a bullish divergence as well. Depending on how strong resistance is above we may see a return immediately to the downside at resistance levels or we might see a tight range develop between 0.9550-0.9475 pending the unemployment news from the US Fed.

Trading Idea: short term I expect a bounce to the yellow trend resistance currently at 0.9535, or to daily resistance at 0.9550. Midterm look for a re-challenge of 0.9475 and, if broken, a test of 0.9425.

(click to enlarge)

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