Nick Nasad
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AUD/USD - Looking for Possible Support Level

The AUD/USD has fallen back from its high this week at 0.9752 - which was the best the Aussie has done against the USD since June 4th.

  • From the look of the price action over the last 2 months, we see that we are in a strong uptrend, and that after a period of consolidation between September 20th and Oct 14th, the pair has seen a break-out that has not been followed by a pullback.
  • We test an important upward sloping trendline, that if respected will define the uptrend. However if its broken, then we can still look towards a very important pivot at 0.9525 as a level where buy orders may be placed. This was an old level of resistance that was broken, but only barely retested, making it an important horizontal pivot for the pair.
  • The recent weakness in the commodity space has hurt the commodity currencies, but at the moment, there doesn't seem to be a huge negative macro catalyst to push risk downward.
  • Therefore, I believe the recent dips should be seen as an opportunity if one is able to locate the best entry levels.

- Nick