Friday, 22 July 2011

Forex: AUD/USD backs away from 10-week highs

Fri, Jul 22 2011, 14:19 GMT (Córdoba) - The Aussie has moved off its 10-week high reached earlier at 1.0873 against the Greenback as risk appetite is easing on Friday after the spike the markets enjoyed yesterday. AUD/USD fell around 35 pips from highs to the 1.0835 area where the correction was contained by the 20-hour SMA.

Despite the bearish correction, the Aussie is holding pretty well, supported by gold prices' sharp rise. At time of writing, AUD/USD is trading at the 1.0845/50 area, still 0.10% above its opening price.

"The overall bullish outlook remains intact for a rise to 1.10+ levels. Resistance-turned-Support is seen at 1.0800 and then significant Support is seen near 1.0730", comments the Kshitij Consultancy Services team. "A dip to 1.0750-30 if seen can attract fresh buying in the market. As mentioned in the morning, Aussie is gearing up for a rally to 1.10 or even higher in the coming days/weeks".

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