The Aussie’s upward momentum is gaining traction as the currency pair separates itself from a downtrend line running through 5/19 highs. Hence, if broad based uncertainty abates the Aussie could be positioned to exert some relative strength over the near-term. Speaking of which, all eyes are still on the EU as Geithner visits Germany to urge solidarity and Spain’s parliament votes on proposed austerity measures. Therefore, investors should keep a sharp eye on the news wire over the next 24 hours. The U.S. will also print prelim GDP and weekly unemployment claims today, meaning economic fundamentals will regain some influence. Speaking of data, Austalia’s CapEx figure came in below analyst expectations, signaling Australia’s economy could in fact be cooling down, giving the RBA less incentive to hike next month. The data wire will be relatively tame across the globe tomorrow, leaving psychological forces in the driver’s seat as the trading week comes to a close.

Technically speaking, the Aussie faces technical barriers in the form of multiple downtrend lines along with intraday and 5/19 highs. As for the downside, the Aussie has technical cushions in the form of 5/26 and 5/25 lows. Additionally, the psychological .80 area could serve as a solid technical cushion should it be tested.

Price: .8365 Resistances:  .8369, .8391, .8409, .8426, .8452, .8470 Supports:  .8341, .8323, .8299, .8268, .8246, .8224 Psychological:  .85, May lows


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