AUDUSD – Daily Technical Outlook 2012.05.17
On Wednesday, after the release of minutes from the last FOMC meeting, the US dollar weakened against most of the currencies. AUD also managed to recover and finally settled at 0.9921 against USD.
On Thursday, AUD opened with weakness against USD and managed to recover from day’s lows of 0.9870 and is currently quoting at 0.9918, almost unchanged from yesterday’s closing.
Investors are waiting for important economic data release from the US scheduled today before taking any directional view on the currency pair.
Even after its vertical fall over the last fortnight, there are no signs of any recovery visible on AUD against USD.
Over the past couple of days, the pair has been consolidating around these levels and trying to hold another psychological support level of 0.9900 on closing basis.
On the upside, the pair faces resistance around 0.9950 – 0.9960 levels and on the downside the pair is holding support zone of 0.9870 – 0.9860.
The pair seems to be trading in a range and may consolidate further around 0.9900 levels.
Should the pair decisively trades above 0.9950 – 0.9960 resistance zone, the pull back can take the pair back to parity (1.0000).
Should the pair decisively break below 0.9870 – 0.9860 support zone, the pair is set for a deeper correction till 0.9750 – 0.9705 levels.
