AUD/USD Forecast February 13, 2013, Technical Analysis

The AUD/USD pair fell initially during the session on Tuesday, but bounced enough in order to reach the 1.03 level by the end of the day. This move formed a big of supportive candle, and it appears that we are getting ready to try and bounce back to the 1.04 level, and then possibly the 1.06 handle.

Right now, it appears that the pair is simply bouncing around in a larger consolidation area, so it makes sense to start buying. On pullbacks, we are more than willing to start buying for a move to the 1.05 handle in the short term. As for selling, we will not do it into we are below 1.02 as it appears to be massive support.


The Australian dollar has severely underperformed many of the other currencies around the world, and as a result we have been fairly shy about trading this market. However, we believe that a little bit of “risk on” should come into the markets, and that the Australian dollar should start to pick up supporters. After all, currencies do tend to play “catch-up” when there this out of synch.

We do see a little bit of danger at the 1.0325 level, and we need to see this market move above their in order to get bullish enough to start buying again. Nonetheless, we believe that the search for yield will get buyers into this market as the treasury markets are so weak right now as far as coupon payments.

We think that the 1.04 level will offer significant resistance, but that should only be a pullback that gets people back into the marketplace. We look at the longer-term charts, we are simply been banging around in this 400 pips area, and this latest action has not changed it at all. Going forward, we fully expect to see a 1.05 print, although it may not be a clear and concise move. With this in mind, you have to be able to hang onto the trade and ignored the volatility if you’re going to buy this pair.


AUD/USD Forecast February 13, 2013, Technical Analysis

Written by FX Empire