AUDUSD – Daily Technical Outlook 2012.05.11

May 11, 2012 13:59

On Thursday, AUD traded with strength against USD, for most of the day, driven by positive economic data of Australian jobless rate falling to 4.9% from 5.2% in March. Yesterday’s strength on AUD against USD was backed by positive economic data and technically was supported by upward trend-line formation, visible on hourly charts. Also daily charts were looking a little stretched and we did have the possibility of a minor bounce back from Wednesday’s closing. However in late trade, AUD did not manage to build on the day’s strength and gave up most of its gains and closed with marginal gains against USD. The main reason for late sell-off in the currency pair can be mainly attributed to the overall strength in dollar, measured by the dollar index (DXY) and the overall weak trend of AUD against USD. On Friday, AUD opened flat and is trading with slight weakness at 1.0049. On hourly charts the pair is facing resistance around 1.0060-1.0065 levels and on the downside the pair may find good support near 1.0015 levels. The immediate upside resistance level is around 1.0085, if the pair manages to move above 1.0060-1.0065 levels. Traders will keep a close watch on the downside levels of 1.0015, as the break below 1.0015 will accelerate the weakness in AUD and is likely to test 0.9970.   Important Technical Levels (CMP – 1.0049) Support 1 – 1.0014              Resistance 1 – 1.0065 Support 2 – 0.9968              Resistance 2 – 1.0088 Support 3 – 0.9909              Resistance 3 – 1.0116     Haresh Menghani Market Analyst Admiral Markets   At any use of the analytical material taken from a site of company Admiral Markets, and the secondary publication on any other resources, the rights to intellectual property for a dealing center «Admiral Markets», the reference to a company site is obligatory.

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