AUDUSD Analysis – January 28, 2012

AUDUSD is facing 1.0750 resistance, consolidation would likely be seen before breaking above this level, and the trading range for next week would be between 1.0450 and 1.0750. Key support is at 1.0400, as long as this level holds, one more rise towards 1.0900 is still possible after consolidation, however, a breakdown below 1.0400 will indicate that a cycle top has been formed on daily chart, and the rise from 0.9861 is complete, then the following downward movement could bring price back to 0.9500-0.9600 area.

For long term analysis, AUDUSD had formed a cycle bottom at 0.9390 on weekly chart. Range trading between 0.9390 and 1.1080 is expected over the next several months.

audusd daily chart