AUD/USD Weekly Technical Report 15-19/10/2012

 The Linear Regression Indicators are trading negatively and pushed the pair to the downside, especially as Stochastic is also trading bearishly. The pair faces now 1.065 areas which must be breached to support the extension of the downside move, where the failure to breach this level will negate the downside move. Since the pair is trading below the ascending trend line provided in blue we expect the pair to extend the downside move to breach the mentioned level which if confirmed will extend the bearish targets for the week. Breaching 1.0310 will fail the expected intraday downside move.

The trading range for this week is expected among the key support at 0.9935 and resistance at 1.0400.

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

Support    1.0200    1.0165    1.0135    1.0095    1.0025
Resistance    1.0225    1.0285    1.0310    1.0370    1.0400
Recommendation    Based on the charts and explanations above, our opinion is selling the pair around 1.0225 targeting 1.0165, 1.0100 then 1.0025 and stop loss with four-hour closing above 1.0310 might be appropriate this week