AUD / USD – Trading Near a 4 Month Low at 1.0160

For the last few months, the AUD / USD has been on a rollercoaster ride moving sharply between two major key levels at 1.02 and 1.06.  Throughout the first half of September, the AUD / USD had an amazing turnaround pushing back towards 1.06 – this level was always going to cause a potential problem having been a brick wall of resistance in early August.  It didn't let anyone down as the AUD / USD was able to pop through on a couple of ocassions in the middle of last month but was strongly forced back.

For the last few weeks, the AUD/USD has slowly but surely drifted lower and once it broke through the support level around 1.04, it was quick to head down towards 1.02.  Late last week it bounced a little off the support level at 1.02 however it finished the week with a strong push back and closing below the key 1.02 level.  It will be interesting to see what levels of demand enter the market at these low levels and whether the AUD / USD is able to move back above 1.02.   (Daily chart below)

AUD/USD Technical

• During the early hours of the Asian trading session on Monday, the AUD / USD has attempted to claw its way back towards 1.02.
• The AUD / USD finished last week moving lower strongly pushing back through 1.02.
• Current range: Trying to hold on just below 1.02.

Further levels in both directions:

• Below: 1.0100, and 1.0000.
• Above: 1.0200, 1.0400, and 1.0600.