AUDUSD Analysis – April 17, 2010

Being contained by 0.9404 previous high resistance, AUDUSD pulled back from 0.9381, suggesting that a cycle top is being formed on daily chart. Deeper decline towards the lower border of the rising price channel is expected next week. As long as the channel support holds, another rise towards 0.9800 is still possible. However, a clear break below the channel support will indicate that the rise from 0.8577 has completed at 0.9381 already, then another fall to 0.8800 area could be seen.

For long term analysis, AUDUSD formed a cycle bottom at 0.8577 level on weekly chart. Rise towards 0.9800 area is possible in next several weeks.