For sometime now, neither the bulls nor the bears have been able to make a complete control of the AUD/USD. As a result, the pair has been caught in a horizontal range pattern. How long will its movement be confined within this pattern?
With the absence of major economic releases from Australia, the Aussie has been left to trade at the mercy of market sentiment. As the problems of the euro zone have once again raised their ugly head in the marketplace, traders have been avoiding riskier assets. And, the Aussie has been one of the biggest losers.
As earlier mentioned, technical analysis reveals AUD/USD has been trading within a horizontal range pattern. Immediate resistance is found at the upper line of the pattern, at 1.0390. On the other hand, immediate support is found at the lower line of the pattern, at 1.0250.
The pair is currently approaching the upper line of the pattern. As such, traders should wait to see if this level will hold or not before pulling the trigger.
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Disclaimer
The author has personal interests in the strategies given above. He may have recommended them to his clients.
