The AUD/USD made decent gains in the previous week amid indications the local economy is picking up, while hopes for fresh stimulus measures from China also supported gains. Weekly bias remains on the upside as Stochastic, RSI, MACD and Moving Averages shows a bullish continuation in the Daily charts but a decent retracement to make a wave 2 to the downside is expected in the early week as a Pin bar daily candle candle stick pattern was seen at the close of Fridays trading session.
A break of 0.92937 should see further rise in the pair to 0.9400 psychological zones. However a break of support 0.92132 could see further decline to 0.91186 support. I recommend buying from the dips as I believe this may produce a better trading opportunity with lesser risk.
Key Economic indicators to watch out this week are the AUD Cash Rate/RBA Rate Statement, AUD Retail Sales and the USD Non-Farm Employment Change/ Unemployment Rate.