AUD/USD Forecast January 25, 2012, Technical Analysis

AUD/USD fell for the Tuesday session, but managed to bounce from the 1.04 level, confirming former resistance as support. This level was the top of a triangle we have been watching lately, and the retesting of it as support is normal. In fact, this is a very positive turn of events for the Aussie.

The triangle measures all the way to the 1.12 level, and because of this, we are willing to buy on dips as long as we are above 1.04. The pair yields positive swap, and this pair will make an attractive investment for investors that are searching for yield in a low-yield environment for trustworthy bonds. We are buying dips on the shorter time frames, and a break of the top of Tuesday’s candle.

AUD/USD Forecast January 25, 2012, Technical Analysis

Written by FX Empire