Dip in the AUDUSD

The AUDUSD has been in an up trend since its rebound off the 0.95773 support level on the daily chart on the 1st of June 2012. 

AUDUSD Daily Chart

The trend which began from this strong rebound, saw a move of over 900 pips to a high of 1.06144 on the 10th of August 2012.

The pair has however shown a break of support level of 1.04410 on the 4 hour time frame at the end of the weeks trading on August 17, 2012 to close trading at 1.04208.

The Hurst Exponent also fell from a high of 60.17% to 54.99% at the end of the week's trading. The Hurst Exponent is a numerical estimate of predictability of a time series and is useful in technical analysis as it provides a means of clarifying time series in terms of predictability.

An outlook of the pair on the weekly chart would observe that the pair has been in a range between support and resistance levels of  0.95773 and 1.10754 respectively, approximately 1,494 pips. Trending between these levels could be sought on the lower time frames.

This dip in the AUDUSD could have occurred due to market concerns on fundamental analysis. Closer observation is needed for the pair during its time of uncertainty for the opening week's trading.

Disclaimer: Foreign exchange trading carries a high level of risk that might not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objective, experience level and risk tolerance. You could loose some or all of your initial investment; do not invest money that you cannot afford to loose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax adviser if you have any questions.. Any opinions, research, data or other information contained within this site are provided as general market commentary and do not constitute investment advice.