Monday, October 31, 2011

AUD/USD challenging 1.0600 resistance

After sliding 200 pips and bottoming out at 1.0503 early European session, the Australian Dollar found support and rebounded, trimming losses versus a broad-based strong Greenback.

AUD/USD bounced from the 1.0500 psychological level and rose over 100 pips toward a session high of 1.0610 before losing steam. At time of writing, the pair is quoting at the 1.0590/1.0600 zone, still down 1.0% on the day.

In terms of technical levels, if the pair manages to take out the 1.0600 area, next resistances could be found at 1.0650 and the 1.0700/10 area, while on the other hand supports might be faced at 1.0540, 1.0500 and then 1.0460.