AUD/USD Technical Analysis October 7, 2011

AUD/USD continued to rise on Thursday as the global markets continue the “risk on” move that they have been in over the last few days. The charts do suggest that we may still be a bit oversold, and this move up is more than likely a short covering rally rather than a serious attempt at bulls to rally this pair with any real conviction. We see the 0.98 to 1.0000 area as potential resistance, and with the Non-Farm Payroll report coming out today, we think that exhaustion could set in on this pair. If we get a bad number – this pair could fall dramatically. Either way, we prefer selling on signs of weakness at this point.

Written by FX Empire