The aussie has been rising, although it has slowed down after reaching close to the underside of a major multi-year trend-line which would be expected to exert downward pressure. It has also pulled back 61.8% of the previous move and could be ripe for a resumption of the down-trend. A move lower would be expected to reach the line of support at 1.0300 – which would have to be breached to give any credence to a bearish view. However, because there are no strong reversal signs yet the pair could also continue higher with the monthly pivot at 1.0470 providing the next target up.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst