AUD/USD Forecast for the Week of February 20, 2012, Technical Analysis

The AUD/USD pair had a fairly quiet week over the last 5 sessions as the 1.08 level continues to keep a bit of a cap on this pair. The candle shape is of a doji, and this shows how tentative the markets are at the moment. The candle from the previous week was a bit of a shooting star, and this shows that perhaps the market is ready to pullback. However, we don’t necessarily want to get overly short of this pair, as it will more than likely be a pullback and not a meltdown. A sub-1.04 level print will more than likely send this pair crashing, but until then – we think a trade to the down side on a break of the lows from this past week gets us short, but we don’t expect a massive drop. A break above the 1.0850 level would have us long and aiming for the 1.10 level.

AUD/USD Forecast for the Week of February 20, 2012, Technical Analysis
AUD/USD Forecast for the Week of February 20, 2012, Technical Analysis

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