AUD/USD Technical Analysis September 7, 2011

The AUD/USD pair fell hard on Tuesday, but has slowed in the 1.05 area. The piercing of this level is certainly a negative, but the area hasn’t been completely broken at this point. The resulting candle looks a lot like a shooting star, but at the bottom of a down move. The area below looks like a massive consolidation area, and if we break lower we could see that exact scenario. We feel that this pair could fall, but there will be plenty of support until you get to 1.00 in order to break free from the bullish pressure. The pair is very sensitive to the global markets, so if you see a bounce in the stock markets, you could see a bounce in this pair.

Written by FX Empire