AUD/USD Weekly Technical Report 26-30/11/2012

The pair rose sharply responding to the positive expectations and the bullish Butterfly Pattern, where the pair also confirmed the formation of the ascending channel provided on the chart. Stability above 1.0420 will now extend the upside move toward 1.0505 and maybe further toward 1.0560; the risk limit for our positive weekly outlook is a breach of 1.0380.

The trading range for this week is among the key support at 1.0260 and key resistance at 1.0645.  

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

Support 1.0420 1.0380 1.0370 1.0330 1.0300

Resistance 1.0440 1.0460 1.0505 1.0560 1.0645

Recommendation Based on the charts and explanations above, our opinion is buying the pair above 1.0420 targeting 1.0460, 1.0505 then 1.0560 and stop-loss with four-hour closing below 1.0380 might be appropriate this week