Hey guys, here’s my technical analysis update on the Australian dollar against the US dollar (AUD/USD) or the “Aussie” as some people call it. The Australian and US dollar were at par last month (kindly check this) then an all-time high of 1.0183 was made on November 5. However, the Aussie started declining by a thousand pips to an 8-week low of 0.9584 because of the Ireland banking crisis then followed up by the potential North-South Korea war last week. Fortunately for the Aussie bulls, the uptrend is still intact and this currency pair could bounce from the major support line in the daily chart to maintain the trend. If the pair successfully bounces from its support and continues to ascend, some selling pressure could be encountered at the 0.9954 resistance. If that marker gets cleared out, the next resistance could be 1.0183. On the other hand, if the decline continues and the AUD/USD breaks down from the trend, the immediate support could be 0.9584. Then after that, the next support could be 0.93-0.94.
Major currencies including the Australian dollar rallied against the US dollar after the European Union agreed to give $113 billion in bailout loans to Ireland on Sunday. This could help the country recover from its current banking crisis, where earlier this year, the same problem took place in Greece and there are fears that Portugal could get hit next in the coming months.