AUD/USD rose for the week as the Aussie continues to perform quite strongly in a tough environment. The gold markets look ready to breakout, and as a result – the currency markets love the Aussie dollar. However, the 1.04 level looks like it is going to be vital for the strength of any uptrend that could form. It is that level that simply must be cleared by the looks of things.
The market looks like it is currently in an ascending triangle of sorts, and the pressure certainly looks like it is building. With this being said – it should be noted that the Friday daily candle was a hammer at the top of the range – perhaps the move comes sooner than we think? Either way, a close above 1.04 would be impressive, and we would have to buy at that point. A break below the bottom of the triangle would be bearish, but we think the parity and 0.99 levels should both offer support so we would only treat it as a quick gain.
AUD/USD Forecast for the Week of January 16, 2012, Technical Analysis
Originally posted here
