AUD/USD 4H Chart 7/25/2012 8:20AM EDT
The AUD/USD dug deeper during the 7/24 session in a wave of risk aversion that pressured commodity currencies and boosted the USD and JPY (safe haven currencies). As anticipated in our recent AUD/USD updates, it came down to the 1.02 area and tested a rising channel support trendline during early 7/25, Asian session. The reaction was respect for this rising support.
In fact the candlestick formation in the 4H chart is a reversal combination.
As we enter the 7/25 US session, the 1.0315-1.0330 resistance pivot area might provide clues to whether bulls can retake the market after retaining the medium term bullish market action. A break above 1.0330 (or maybe 1.0350 as well) shows that bulls are still in charge. Still, with the momentum becoming more choppy, the bullish outlook should probably be conservative, up to the 1.0440 high fro now in case the market has turned sideways.
A more aggressive look to the upside could be the resistance pivot at 1.0470 seen in the daily chart.
AUD/USD Daily Chart 7/25/2012 8:25AM EDT
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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