AUD/USD fell hard on Tuesday as the risk appetite of the markets seems to be fading slightly. Perhaps it is the fact that the participants already expected the Greeks to be bailed out, but the fact is that the pop we got in riskier currencies as a result of that deal has all but faded in most pairs. The Aussie is very strong, but it looks like we are going to retest the 1.0650 level as support at this point. If this level gives way, we could see a test of 1.06, 1.05, and lastly and more importantly, the 1.04 level. The 1.04 level should be massive support, and it isn't until that level being smashed through that we could consider selling this pair. In this scenario, we are buying pullbacks and breakouts - and aren't interested in selling until we are below 1.04 at the least.
AUD/USD Forecast February 22, 2012, Technical Analysis
AUD/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3