Weekly Technical Outlook: AUD/USD ; Market Forecasts for August 10th – August 14th

• Stop loss 0.7249
• Entry level 0.7387
• First Target at 0.7483
• Next targets to test at 0.7584, 0.7642

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Technical Analysis

AUD/USD is looking for a consolidation pattern from 0.7229 and is still seen in progress. This pair is sitting right on some recent solid Support after a long term movement slipped downward. The price rested the levels around 0.7300 levels and closed above 0.7300 levels.

We expect some pull-back at around 0.7387 levels and a rebound from here is needed to confirm the uptrend resumption. Otherwise, we’d likely see more corrective side-way trading. If the pair breaks below 0.7249 our bullish view on the pair will dampen our view and would extend the downside to new lows.

In the bigger picture, whole medium term up trend is looking stronger with support area finding price action generating two bar reversal. This confirms for an upward bias and a shift in momentum and is expected to rebound from here strongly. Two back to back bar breaks at 0.7387 should possibly pave the way by just developing into a side way consolidation pattern- once strongly at 0.7483 and should look at 0.7584 and later at 0.7642 resistance zone. Outlook remains bullish for the week.

Economic

• Westpac Consumer Confidence
• Consumer Inflation Expectation for the Aussie
• Labor Market Condition Index for the US
• EIA Crude Oil Stocks Change with 10 year Note Auction followed by Monthly Budget Statement
• Import Index, Retail Sales and Initial Jobless Claims and to end with week with Industrial Production , capacity Utilization and Michigan Consumer Sentiment Index

Area of Interest

• Strong support at 0.7230 levels which is flip area for current levels.
• Bullish pattern confirmed with back to back two bar reversal at support levels are stronger and look for upward bias.
• Pair finding support on trend line and closed above the decline trend line.
• Key area to target to the upside shall be at 0.7584 around.

For more detailed analysis from the author, please visit NoaFX.