AUD/USD Weekly Technical Report 1-5/10/2012

The pair declined sharply to trade below the harmonic resistance once again. This downside move is accompanied by oversold signs on Stochastic, at the time the pair remains stable above the first target of the bullish Bat Pattern, yet the Linear Regression Indicators are biased negatively. We prefer to remain neutral for now and observe trading around 1.0310 and 1.0400.

The trading range for this week is expected among the key support at 1.0135 and resistance at 1.0600.

The short term trend is to the downside targeting 0.9400 with steady daily closing below 1.0710.

Support    1.0310    1.0255    1.0220    1.0185    1.0135
Resistance    1.0370    1.0400    1.0465    1.0500    1.0560
Recommendation    Based on the charts and explanations above, we remain neutral for now awaiting more confirmations for the next move