AUD/USD Trade Update for 080609

Secondary momentum within AUD main momentum channel is being challenged by the USD. A price that exceeds the red channel support can easily acquire volatility between Target 1 and Target 2 because of their close proximity. Similar to the GBP/USD, a pullback at this conjuncture or at the red channel support may present a good Overbought AUD hypothesis test.

AUD is a particularly strong currency, with Australia having plenty of commodities as dependency hence less affected but will still be by the current US economic price action play. Additionally, a major re-trace in the case of an overbought AUD still looms and a continued descend of Gold and Silver might just to the trick. Overall in the technical perspective, on day to day terms this week, the current consensus for AUD/USD is an even 2/4 AUD bias. Too late for a bearish entry now, so may as well wait for a better prospect here.

Disclaimer: Trading in the FOREX market & other forms of investments involves risk. This information should not AT ALL be viewed as investment recommendations. The charts & information provided here are not meant for investment purposes & only serve as technical examples.