AUD/USD Weekly Technical Report 21-25/1/2013

The pair’s attempts to the downside  last week were halted around support level 1.0495 until Stochastic entered oversold areas. Stability above Linear Regression Indicator 55 over daily basis is considered positive and support our expectations for another   attempt to the upside. Stability above 1.0435 levels during the week will support our expectations, but we prefer to see the pair hold above 1.0495 levels.

The trading range for this week is among key support at 1.0340 and key resistance at 1.0735.

The general trend over short term basis is to the downside below levels 1.0710 targeting 0.9400.

Support 1.0495 1.0460 1.0435 1.0370 1.0340

Resistance 1.0535 1.0550 1.0585 1.0600 1.0615

Recommendation Based on the charts and explanations above, our opinion is buying the pair above 1.0495 targeting 1.0585, 1.0615 then 1.0650 and stop-loss with four-hour closing below 1.0435 might be appropriate this week