Forex Technical Update

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AUD/USD 1H Chart 10:55AM PM EDT 7/6/2012


The NFP data paved the road for some risk-off trading, which pressures the commodity currencies like the Aussie, and buoy save haven currencies like the Greenback. The AUD/USD fell from through the previous daily range support at 1.0240 and is now attacking the 1.02 handle.

If this risk-off decline extends, the next support for AUD/USD is seen near 1.0125. Here we have a rising trendline as well as a previous resistance pivot to be tested as support. A hold above this level suggests a further upside risk toward 1.0350-1.0380 where the market will test a previous resistance pivot.

However if AUD/USD rallies from the trendline but holds below the 1.02-1.0220 area on the way up, it is likely respecting topping formation, and the bearish outlook would strengthen.

The bearish outlook strengthens further with a break below parity (1.0). That opens up a recent support area just above 0.98.

AUD/USD 4HChart 10;58AM EDT 7/6/2012


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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.