AUD/USD Forecast for the week of August 27, 2012, Technical Analysis

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The AUD/USD pair initially tried to rally for the week as we pierced the 1.05 level yet again. However, the selling pressure became strong at the 1.05 level and send this pair back down in order to form a shooting star. This looks very weak at this point in time, and in fact the daily charts saw this pair close below and ascending trend line.

Because of this, we believe that the poor economic numbers out of China are starting to weigh upon the Aussie dollar. With this in mind, we are willing to sell this pair on a break of the bottom of this previous week’s candle. We expect the 1.03 level to offer a bit of support, but if that gives way we could see parity in very short order. As for buying this pair, we need to see fresh new highs above the 1.06 level in order to be comfortable.

AUD/USD Forecast for the week of August 27, 2012, Technical Analysis

AUD/USD Forecast for the week of August 27, 2012, Technical Analysis

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About:FX Empire Analyst - Christopher Lewis

Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

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