Technical outlook and chart setups:
AUD/USD bulls are watching for a turn around in the downtrend, which has been ongoing since August 2011. The pair has produced a potential pin bar candlestick pattern on the weekly charts, indicating a potential reversal. Furthermore, prices are bouncing off a fibonacci 0.786 support of the entire rally between Oct 2008 and Aug 2011 respectively. The ABC counter trend also seems to be completed around 0.7000. It is strongly recommended to initiate fresh long positions now, with risk at 0.6900. Immediate interim support is seen at 0.7000 and lower, while resistance is seen at 0.7450 and higher on the weekly charts.
Initiate long positions now with stop at the level of 0.6900.
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