AUD/USD Technical Analysis for May 3, 2011

This market is parabolic. The market had a weak day today, as the trend is having a hard time finding more buyers at these lofty levels. To say that this market could pullback is stating the obvious, as there really can’t be too many buyers left at this time. The pullback could be brutal, but will certainly find support somewhere below, perhaps at the 1.07, 1.05, and certainly at the 1.02 levels. Don’t sell – you can never know when a market will turn and the trend is firmly against you. Waiting on a pullback to those levels is probably the wisest choice.

Written by ForexMansion.com