AUD/USD rose for most of the week, but then fell back to the opening price. The resulting candle is a shooting star, which was preceded by a hammer. The pair looks like it is going to struggle to get above the 1.03 level, and if it does – there will be an even bigger fight to clear 1.05 as a result. The pair looks like it is trying to find new consolidation in the 0.99 to 1.03 range, and as a result will be more of a scalping pair going forward. We do prefer selling in the short-term though, as the headline risks are still to the downside, and the Aussie is risk-sensitive. The risk sentiment should continue to push this pair back and forth in a choppy range for the next few weeks. A breaking below the parity level again has us pressing lower, but there is a ton of support at the 0.95 level that will be difficult to break.
AUD/USD Forecast for the Week of January 9th, 2012, Technical Analysis
Originally posted here
