DowntownForex

AUD/USD Trade Idea

By Forex District – The pair is falling on heightened risk aversion after the U.S. NFP report showed broad based job cuts and weaker wage growth. Worries about the pace of economic recovery has also weighed on sentiment ahead of company earnings. Stocks have been trending lower on Monday and the pair is expected to look at Wall Street’s performance for direction.

Looking at the 4hour chart, AUD/USD stayed below the 0.80 level suggesting further downside possible subject to equity market moves. The pair is currently testing a strong support at 0.7891 (50.0% Fib) which may see a slight pullback. However, if equities and gold continue to fall the pair is subject to further falls below 0.7900. The bias is bearish with preferred strategy to sell on rallies in the near term. The next level of support is the 0.7809, followed by 0.7749 and 0.7704.

Resistance is now seen at 0.7963, followed by 0.8010 and 0.8087.

Trading levels in play:

Limit Sell @ 0.7968 Targets: T1 0.7948 – T2 0.7809 Risk: 0.8012
* After 15 pips profit move stop to entry, take profit at will. GTNYC Trade is canceled if it rebounds near entry and moves higher by 20 pips. Comments will follow if outlook changes. Forex – technical analysis aud/usd trend forecast July 6, 2009

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