AUD/USD: near-term prospects
AUD/USD rose to $0.9790 yesterday, but returned back below $0.9700 today as the Reserve Bank of Australia maintained easing bias.
Westpac: “A major recovery is very unlikely ahead of US payrolls, but we look for at least interim stability on the oversold Aussie. Look for $0.9530 to hold, with upside capped mid-$0.9700s. On a one month view we see the Fed remaining dovish, helping AUD/USD back to $0.9800”.
Resistance is at $0.9700, $0.9750, $0.9800 and $0.9840. There’s a 50-month MA at $0.9788. Support is at $0.9650, $0.9600, $0.9550, $0.9530. Watch $0.9550/35 (bottom of H4 Ichimoku, previous resistance line). A break below $0.9528 (low May 29) would expose $0.9488 (low Oct.5 2011).
Chart. H4 AUD/USD