AUD/USD analysis (July 08, 2011)

The pair has confirmed a bullish bias with a new rally on top of 1,0655 now forming a clear support.
Its progress has been well capped though by the top of the daily range at 1,0790.

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.
We might see the pair failing once again to break above the top of its range. However, if we do see a break above 1,08 today, it would expose the immediate target at 1,10 (all time high).

Inversely, a break below 1,0655 would signify a continuation of the trading range with a next target at former critical level (1,05).