Last week AUD/USD went as high as 1.0844 but found resistance there and the sharp downward correction brought AUD/USD down to 1.0640 before the weekly closing at 1.0673.
On one hand the sharp downward move creates the doubts about the continuing upward move but please note that such a correction could not be ignored. Also please note that the downward move has not broken below the supports of either 22-day EMA or the Kijun-sen support of daily Ichimoku cloud. The currency pair found support almost exactly at the 22-day EMA as well as just above the mentioned Kijun-sen. You may also check the Watchouts-Observation-Alerts sub forum on our Forex forum for a post made about this on Friday.
For the next week, initially we expect some sideways move as long as a firm break below the above mentioned supports i.e. 1.0600 does not take place. 1.0600 is little below both the above mentioned levels. With a support over 1.0600, we expect further upward move to retest the recent 1.0844 and with a break over that towards 1.1000 resistance and with a break over 1.1000, further towards 1.1079 high.
On the downside, if AUD/USD breaks below 1.0600 then we would expect further downward correction towards 1.0470/1.0440. 1.0470 represents the 55-day EMA support as well as the Fibonacci 38.2% retracement of the upward move during December 15th, 2011 to February 8th, 2012. But even such a move can only be considered as a consolidation move and will not change our bullish outlook. We will expect a strong support in this range i.e. 1.0440/1.0470.
Overall we stay bullish for AUDUSD and will be expecting a move towards 1.1000 if the support levels mentioned above hold good.
You may also check the weekly audusd forecast/Outlook and daily aud/usd analysis at ForexAbode.
