AUD/USD Technical Analysis for the Week of October 10, 2011

AUD/USD fell during the week, and then bounced from low support in the 0.95 area. The pair is highly sensitive to the “risk on” or “risk off” attitudes of traders, and has traded as such lately. The pair will continue to fall every time bad news takes over the market’s mentality. The Aussie is particularly vulnerable at this point as it has become a favorite “punching bag” of the trading world every time the news flow gets bad. However, the resulting candle is a hammer, and it looks supportive on the weekly chart. Further confusing the signal is the fact that the Friday candle is a shooting star, signaling a strong sell. Because of this, we expect the pair to be choppy, and at the whim of news. We prefer selling rallies at this point as bad news is almost a given recently.

Leave a Reply

Your email address will not be published. Required fields are marked *