AUD / USD Forecast - January 30 – February 03, 2012

Last week, we projected AUD/USD to reach the 1.0660 level, and that’s what exactly the pair did.

For the sixth consecutive week, the Aussie rose against its US counterpart, climbed another 190 pips to close the week at 1.0657. Although the most of the Australian economic indicators were lower than expected, AUD was helped by the weaker performance of USD. The indicators scheduled to release this week are not in the favors of both Aussie and Greenback. Here is our forecast for the AUDUSD for this week in a technical point of view.

 
Support and Resistance levels for AUD/USD

1.1025 – Strong Resistance (Highest since 1990)
1.0852 – Strong Resistance (2011 Aug, Oct high)
1.0778 – Strong Resistance
1.0733 – Strong Resistance
1.0660 – Weak Resistance
1.0657 – Last Week Close
1.0596 – Weak support
1.0500 – Weak support
1.0375 – Strong support (2011 Dec High)
1.0200 – Strong support
1.0080 – Strong support

We remain Bullish for the pair AUD/USD

Aussie is on a wonderful rally, not even considering the lower-than-expected figures of economic indicators, mainly because weaker performance by USD. We would like to remain bullish for the pair, to reach the 1.0733 level, but we also think it takes a better effort to breach that level. Even the Aussie breach that level, it might not break through the 1.0852 area. So, in brief, AUDUSD, Bullish, may reach 1.0733 but not beyond 1.0852.

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