Forex4you Technical Analysis 4 July 2011

AUD/USD: technical analysis
Previous forecasts, predicting further downtrend were false. The price went back to growth and rose to level 1.0770/80, which merges with a strong local maximum, formed at the end of May-beginning of June, which pushed the price lower, to 1.0730/10 level. This event gives reasons to expect a reversal towards the up trend, but only if the price holds above 1.0700/10 levels, mentioned in the previous analysis. So we now anticipate a historical maximum at level 1.1000/10 to be tested in the near future. Forming MACD divergence, however, doesn’t support this forecast, suggesting to consider a new correction within 1.0780 - 1.0700 range. At the same time, if the price falls below 1.0700 level and fails to hold within the current range, we’ll be anticipating a possible reversal to level 1.0400. Decline below 1.0620/1.0590 range will be another sign for that.

Forex
Analysis by: Joaquin Monfort
Forex4you analyst

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