AUD/USD Technical Analysis August 18, 2011

The AUD/USD pair rose above the 1.05 level, and managed to hold above that level on Wednesday. The pair now looks set to try and reach the 1.0750 level as the gold market is strong, and the USD is weak in general. The pair is now becoming a bit of a “buy on the pullbacks” type of currency pair again, and as such – we will trade it that way.

A break below 1.05 could get buyers to come back in, especially at the 1.02 level which should be support. Parity is important as well – naturally. The fundamentals in AUD are firmly tied to China as it supplies that country with a lot of its raw materials, and as long as China remains bullish – so does Australia.

Written by FX Empire