The Australian dollar was trading at 0.90 levels last week very expected by investors; it's a strong rebound area and also a very strong psychological level. This pair is closely linked to the Asian economy, and while the economic situation in that part of the world continues to be obscure, the Australian dollar will be uncertain too. The CPI figures from Beijing are of particular interest. If the data is weak again, this might be what is needed for the pair to finally break below the 0.90 level.
Therefore, we should expect a weekly close above 0.9118 weekly pivot point. In this area we look for buying opportunities with targets up weekly R2 level. According to monthly pivot, this pair should break the 0.9347 area for a move higher in the medium term. We believe that the following signal will be valid this week.
Signal for July 08 - 13, 2013
Buy if close above 0.9118 with take profit at 0.9198 and 0.9333 (W_R2) and stop loss below 0.90
_____WEEKLY_____
Weekly - R3 = 0.9413
Weekly - R2 = 0.9333
Weekly - R1 = 0.9198
Weekly Pivot = 0.9118
Weekly - S1 = 0.8983
Weekly - S2 = 0.8903
Weekly - S3 = 0.8768
_____MONTHLY____
Monthly - R3 = 1.0262
Monthly - R2 = 1.0026
Monthly - R1 = 0.9583
Monthly Pivot = 0.9347
Monthly - S1 = 0.8904
Monthly - S2 = 0.8668
Monthly - S3 = 0.8225
If you would like to get this indicator, feel free to contact me via skype: gerardofx or e-mail: gerardo.porras@analytics.instaforex.com