FX.co ★ AUD/USD technical analysis for November 3, 2011

D1 chart:

AUD/USD pair has been correcting an upward long-term trend which is confirmed by MACD moving over the zero line (trend) and the reverse of the stochastic oscillator downwards (correction). Traders can use support provided by an upper line of Andrews pitchfork and correction of 1.1079-0.9387grid as orienting indicators:
- 1.0717 = 78.6%
- 1.0990
Support is ensured by 0.9387-1.0752 correction grid.
Support lines:
- 1.0070 = 50%
- 0.9908 = 61.8%
Market oversoldness/overboughtness (D1)
Detrended Price Oscillator – DPO - is below zero, so, taking into consideration an uprising trend, it is necessary to wait until the rebound is over before starting opening buy trades.
Supplementary support/resistance lines (DPO): the zone of oversoldnness – current prices; the zone of overboughtness - 1.0610 and higher.

H4 chart

In the mid-term chart the pair forms a downward trend which is confirmed by MACD moving below zero and the stochastic’s reverse downwards. In order to open trades in direction of a strong uprising trend, the rebound should be finished.
Market oversoldness/overboughtness (H4)
DPO is below zero which prevents opening upward trades under the conditions of a strong upside trend. First the rebound should be over.
Supplemetary support/resistance lines (DPO): the zone of oversoldnness – 1.0220 and lower; the zone of overboughtness - 1.0420 and higher.