Forex: AUD/NZD: Aussie rallies above 1.2200 to 1.2245/55 area

Thu, Oct 8 2009, 09:58 GMT
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FXstreet.com (Barcelona) - Australian Dollar has rallied during the day so far, and the pair's bounce at 1.1935 low on Tuesday, has extended to levels above 1.2200/10 area, breaking, thus, above the downtrend line off mid September highs to test 1.2240 (Sept 30 high) at the moment of writing.

In case of breaking above 1.2240/55 (Sept 30/21 highs), next resistance levels would be at 1.2300 (Sept 14 high) and 1.2400 area, on the downside, support levels lie at 1.2155/70 , previous highs, and once below there, 1.2055/65 (Oxct 2 low/intra-day low) and 1.1990 (Oct 5 low).

According to the Varengold Bank Research Team, the pair has reached strong resistance area, and a pull back towards 1.2000 should be taken into account: "As we can see, the market has reached two strong resistance levels. The resistance levels are the horizontal line from the middle of September of around 1.22 and the bearish trend line, which has also been established during September. The pair could be overbought and may probably pull back towards the support line at around 1.20."

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