AUD/USD: Technical Analysis and Trading Recommendations for February 28, 2012.

Pivot Point: 1.0691.

Intraday Technical levels (the 28th of February, 2012):

R3: 1.0867
R2: 1.0825
R1: 1.0733
PP: 1.0691
S1: 1.0599
S2: 1.0557
S3: 1.0465

Overview:

AUD/USD pair has turbulently from 1.0430 reached the level of 1.0793. Yesterday it closed at level 1.0730. Three months ago the price was below 78% of Fibonacci retracement levels. It is necessary to mention that the price formed a strong resistance level 1.0795 which is located between 78% of Fibonacci retracement levels and 61.8% on Daily chart. Thus, the market is likely to show again the signs of bearish movement indicating a bearish tendency from the level 1.0873 with targets located near the strong support level 1.0675. Meanwhile, the bears were forced to go back to this level, forming a strong support in the point 1.0675 indicating a bullish opportunity above the support level. This can be considered a good sign for BUY-deals higher than 1.0675 with the level 1.0740 as a target and further the 1.0830 level.

Trading Recommendations:

According to previous events, the price is still been trapped between 1.0870 and 1.0650.

Buy above 1.0675 with targets towards 1.078. Sell below 1.0873, it will call for downtrend in order to continue bearish towards 1.0595 then 1.047.

Observation (s): Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate. Strong Support: 1.0600. Strong Resistance: 1.0873.