AUD/USD analysis (July 07, 2011)

Considering the US Dollar bounce and the renewed risk aversion on the market, the Aussie has been outperforming yesterday stopping its setback above 1,0650.
A break above 1,08 would probably resume the uptrend with an acceleration towards all time high at 1,10.

AUD/USD: daily chart

The pair is evolving in a trading range between 1,0450 and 1,0790. It has been consolidating since the beginning of May. We now need to see a break outside either limit before considering a middle term strategy.

Over the short term, a break below 1,06 would expose the lower bound of the range at 1,0450.