AUD/USD Weekly Technical Report 19-23/11/2012

After reaching the first Potential Reversal Zone (PRZ) at 1.0290 the pair returned sharply higher affected by the bullish Butterfly Pattern expected earlier. This upside move remained limited below the previously breached main ascending support and Stochastic reflects overbought signals; the Linear Regression Indicators are also trading negatively but the pair is stable above them. We now need confirmations for the next move as the bullish Butterfly Pattern conflicts with the breach of the ascending support and therefore our weekly outlook is neutral waiting for more confirmations for the next move.

The trading range for this week is expected among the key support at 1.0165    and resistance at 1.0505.

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

Support 1.0330 1.0300 1.0290 1.0260 1.235

Resistance 1.0385 1.0400 1.0440 1.0485 1.0505

Recommendation Based on the charts and explanations above, we remain neutral for now awaiting more confirmations for the next move