Forex Technical Update

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AUD/USD 1H Chart 3:35PM EDT 7/3/2012

AUD/USD

So far this week, the AUD/USD has extended last week's rally , which was accelerated after the EU summit. After the RBA held rates, the Aussie had some initial bearish noise but regained a bullish stance by the 7/3 US session. As we wind down the 7/3 global trading session, the AUD/USD is pushing at the 1.03 psychological resistance level.

The rally has no doubt slowed down as price action shows a flatter rally than Friday's sharp swing and the RSI has a bearish divergence with price. The market is slowing ahead of the key event risks on Thursday (Spanish 10-yr bond auction and ECB meeting/press conference) and Friday (US NFP), which can move risk sentiment and ultimately affect commodity currencies like the Aussie and safe haven currencies like the Greenback.

Before these key events if the AUD/USD might have trouble pushing above the resistance pivot area between 1.0350 and 1.0380, seen in the daily chart. Also note that this is in confluence with the 61.8% retracement (1.0375) of the March- June bear run from 1.0858 to 0.9595.

AUD/USD Daily Chart 3:30PM EDT 7/3/2012

audusd

Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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