AUD / USD – Mounting Pressure on the Support Level at 1.02

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.

For the last month or so, 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.  Over the last couple of weeks it has bounced a little off the support level at 1.02 however it looks likely to move back towards there and challenge the level again.  (Daily chart below)

AUD/USD Technical

• During the early hours of the Asian trading session on Monday, the AUD / USD has eased off from a short term resistance level at 1.0260.
• The AUD / USD finished last week moving lower strongly falling from near 1.03 down towards 1.0220.
• Current range: Trying to hold on around 1.0250.

Further levels in both directions:

• Below: 1.0200, 1.0100 and 1.0000.
• Above: 1.0300, 1.0400 and 1.0600.