The AUD/USD pair bounced from its support zone (91.67-90.86, mentioned below) on a daily time frame. This support zone was given in our analysis on 11th June and it is a fresh level of support for price action. Last time the price was at this level was in September 2010.
The strength of this upward is stronger as the price has left the support zone in a ballistic move however, this could be capped by the downward trend line. The volatility for the pair remains high as the price has pierced the Bollinger band at an important level of support. The piercing of a Bollinger band does have significant importance only when this is taking place at an important level of support.
The RSI is moving in line with the price action which means that the bias could be to the upside.
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Important Levels
Resistance Zone
1.0378-1.0256 Major
0.9850-0.97733 Minor
0.9633-0.9556 Minor
Support Zones
91.67-90.86 Minor
0.8864-0.8772 Major
DISCLOSURE & DISCLAIMER:
The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam