AUD / USD – Keen to Test the Resistance Level at 1.04 Again

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 highly likely to cause a potential problem having been a brick wall of resistance in early August.  It didn't disappoint 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 with excessive selling pressure.

Starting in the middle of September, the AUD/USD slowly but surely drifted lower and once it broke through the support level around 1.04, it was quick to head down towards the support level at 1.02 again.  Over the last few weeks it has bounced back off the support level at 1.02 however has run back into the key level at 1.04 which has pushed it away lower on two ocassions.   This level has also become quite significant and the AUD / USD looks poised to test this level again this week.  (Daily chart below)

AUD/USD Technical

• During the early hours of the Asian trading session on Monday, the AUD / USD has just eased back towards 1.0350.
• The AUD / USD finished last week just like it did the previous week, by running into a wall of resistance at 1.04 and moving lower.
• Current range: Trading above 1.0350.

Further levels in both directions:

• Below: 1.0300, 1.0200 and 1.0100.
• Above: 1.0400 and 1.0600.

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