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AUD/USD: Range bound between key levels

FXStreet (Guatemala) - AUD/USD is currently trading at 0.7681 with a high of 0.7722 and a low of 0.7637.

AUD/USD demand has tailed off as we approach the closing hours of the week's session. The bids that took the pair from 0.7640 have retracted and supply at the aforementioned highs tests the 0.7680 support to current levels. Technically, there is a bullish bias in the form of the divergences of the weekly and daily RSI's and a break of 0.7720 could be compelling enough to attract demand up to test the March highs on the 0.79 handle over time.

To the downside however, Karen Jones, chief analyst at Commerzbank explained that below 0.7534 lies the two month support line at 0.7504. "Once it has given way, the October 2006 low at 0.7416 will be in focus, followed by the .7369 July 2005 low." She added, that longer term, the 61.8% Fibonacci retracement of the 2001-11 advance at 0.7184 could also be reached. "We will retain our bearish forecast while the February and March highs at 0.7912/38 cap on a daily chart closing basis. A daily close above the 0.8034 early January low is needed to negate medium term downside pressure."

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