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12 Apr 2013
Forex: AUD/USD shakes off jobs data, 1.0600 still key pennant pattern resistance on weekly chart
FXstreet.com (Barcelona) - After trading sharply lower following the release of the Aussie Employment data, the pair was able to shrug off early weakness and finished the day down 2 pips at 1.0446. It was a volatile session as prices traded all the way down to 1.0500 after the economic release, before buyers stepped in aggressively taking the pair as high as 1.0582 during the European session.
“1.0500 held very well yesterday inspite of the weak jobs data and I am told there is more interest to buy near that level again today. Topside sellers coming in between 1.0580/00”, noted Peter Fell of FXBriefs.com
From a longer term technical perspective, it is important to note just how critical the 1.0600 level is on the weekly chart which has capped numerous rally attempts since August 2012. A weekly close above the 1.0600 level would help complete a massive a 20 month pennant pattern which has longer term targets as high as 1.2100.
“1.0500 held very well yesterday inspite of the weak jobs data and I am told there is more interest to buy near that level again today. Topside sellers coming in between 1.0580/00”, noted Peter Fell of FXBriefs.com
From a longer term technical perspective, it is important to note just how critical the 1.0600 level is on the weekly chart which has capped numerous rally attempts since August 2012. A weekly close above the 1.0600 level would help complete a massive a 20 month pennant pattern which has longer term targets as high as 1.2100.