AUD/USD Technical Analysis and Trading Recommendations for October 26th - 28th, 2011.

Forecast

Mourad El Keddani

 

Pivot Point: 1.0439.

Overview:

AUD/USD's turbulent rise from 1.0362 has extended further to as high as 1.0500 two days ago, and it closed at 1.0424 yesterday, and it should be noted that the price is now approaching a strong support at 1.0362, because the bulls had already broken this level therefore the bears were forced to pullback above this level of 1.0362 (24^th of October 2011). As well the price has placed above 50% of Fibonacci retracement levels ten days ago. Futhermore, this strong level has still been trapped between 61.8% of Fibonacci retracement levels and 78% on H4 chart. So it is probably that the market will start showing the signs of bullish market again in order to indicate a bullish opportunity on level of 1.0360 with a first target of 1.0465, and continues towards 1.0600. Meanwhile; if the support (1.0362) breaks, the market will indicate a bearish opportunity below it then the support will be become a resistance, so it will a good sign to sell below 1.0360 with a target at 1.0180 and it might resume to 1.0080.

Trading Recommendations:

According to previous events, the price has still been trapped between 1.0241 and 1.0465.

• Buy above 1.0360 with a first target of 1.0460, and continues towards 1.0575.
• Closure below 1.0320 (H4 chart), it will call for downtrend in order to continue bearish towards 0.0078 (50% of Fibonacci retracement levels)
  

  Intraday Technical levels ((26^th of October 2011)):

  R3:1.0580
  R2:1.0538
  R1:1.0481
  PP:1.0439
  S1:1.0382
  S2:1.0340
  S3:1.0283
  

  Observation (s):

  Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
  Key level at 1.0362.
  
  http://instaforex.com/forex_analysis/42351/?x=OUE

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