AUD/USD Takes Out Major Resistance, USD/CAD Under Pressure

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AUDUSD:  Takes Out Major Resistance, Resumes Long Term Uptrend.

AUDUSD:  With the pair breaking through the 1.1009 level, its 2011 high on Tuesday and following through higher in early trading today, further upside gains are likely in the days ahead.

This is coming on the back of a recovery tone set from the 1.0389 level, its Jun 27’2011 low. Further gains now targets the 1.1100, its psycho level with a cut through there allowing for more strength towards the 1.1200 level, its psycho level and possibly higher towards the 1.1300 level.

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Its daily and weekly RSI are bullish and pointing higher suggesting further gains. On the downside, the 1.1009 level and the 1.0800 level, its July 13’2011 high come in as supports.

As long as these levels hold as supports its present bullish build up remains intact. However, the risk to our analysis will be a break and hold below the 1.0525 level, its July 12’2011 low followed by the 1.0389 level.

Further down, support lies at its April 05’2011 low at 1.0287 and next its .618 Fib Ret.(0.9702-1.1009 rally) at 1.0200.

USDCAD: Bear Pressure Set To Continue.

USDCAD:  With its broader long term weakness triggered and intact, further weakness is expected in the days ahead.

This  leaves the 0.9300 level, its psycho level as the next downside objective with a violation of there allowing for more declines towards the 0.9200 level and then its 2007 low at 0.9055.

Its daily studies are bearish and pointing lower suggesting further gains. Alternatively, the pair will have to return above the 0.9530 level to resume its recovery possibly towards the 0.9635 level.

Further out, resistance comes at the 0.9778 level ahead of the 0.9912 level traded on Jun 27’2011.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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