AUD/USD analysis (July 01st 2011)

After 3 days of an impressive rally, we have seen AUD/USD consolidating yesterday drawing a doji on the daily chart.

The daily upper bollinger band being reached, we might see some corrective move going forward.

AUD/USD: daily chart

A break above 1,0780 (June high) is now required for a continuation towards all time high at 1,10.
The momentum remains bullish but we might see some profit taking going forward with the long US weekend coming up and the associated lack of volatility.

The first barrier to look on the downside is 1,06 (20 daily moving average). A break below this level would signify a potential reversal of the strengh. Indeed, the pair is still evolding in a daily range which means there is still no clear trend.