FX.co ★ AUD/USD under Pressure.

Overview:
AUD/USD should to consolidate after hitting five-week low of 1.0342 Wednesday undermined by weak investor risk appetite beacuse of the U.S. fiscal cliff fears and bleak outlook for Australian mining industry. But AUD/USD downside limited by firmer commodity prices, aussie demand on buoyant AUD/NZD and AUD/JPY crosses, the AUD/USD interest-rate differential and sovereign demand for aussie.
Preference:
Sell below 1.039 with targets 1.033 & 1.03 in extension.
Support Levels:
S1 - 1.0342-1.0332 band (Wednesday's low - Nov. 21 low)
S2 - 1.03
S3 - 1.0283 (Nov. 16 reaction low) and 1.0230 (Oct. 23 reaction low).
Alternative scenario:
Buy above 1.039. Above 1.039 look for further upside with 1.042 & 1.0445 as targets.
Resistance Levels:
1.0416 (Monday's high)
1.0445
1.0486 (Friday's high)
Technical Comment:
As long as 1.039 is resistance, look for choppy price action with a bearish bias. Daily chart mixed as MACD is bearish, 5- & 15-day moving averages are falling; but stochastics is turning bullish at oversold.