Weekly Trading Signals – July 27, 2013

AUDUSD: Buy

Following what could be rightly termed a Bullish Confirmation Pattern, the AUDUSD has given a clear indication of a bullish signal. Since last week, the price has closed above the EMA 56, while the RSI period 14 moved above the level 50. Within the same week, the novel bias was morbidly threatened during some intense, albeit short-term selling pressure. That proved to be unreliable as the AUDUSD resumes it northward journey.

In this week alone, the price has moved upwards by over 110 pips: the present dip in the price thus proffers a good entry point. Significantly bullish periods (with vivid bullish runs) would have to end up in higher highs (further than the latest price levels). In addition, extremely bearish periods (with noteworthy southward biases) would usually have their movements tally with further lower lows (further than the recent price levels).

It is likely that the price would go as far as the supply levels of 0.9350 and 0.9450 respectively, while any bearish threats along the way may not pull the price below the demand level of 0.9150.

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