The Australian Dollar is trading very close to 1.0231 weekly pivot. It is likely that in this area there is an upward bounce because in the previous weeks this pair jumped to the 1.03 psychological level area. Now the weekly pivot point is located on the level of 1.0308. Therefore, it is recommended to buy only if the pair is trading above 1.0231 and we will place stop loss some 50 points below this level, because in the area of 1.0200 the first monthly support is located. It adds strength to the support of the pair. The target area is placed in the first weekly resistance at 1.0394. Therefore, we consider the following signal will be valid for this week.
Signal for May 06 – 11, 2013
Buy if it closes above 1.0231 with take profit at 1.0308 and 1.394, stop loss is 50 pips below 1.0230.
The euro is trading below 1.3129 weekly pivot. At the moment it is trading at 1.3107. Given that this pair could not overcome the 1.3129 area, it is likely that for the next few hours the pair falls to 1.3015 first weekly support, key level. If the price breaks the 1.3015 area, it is likely to fall to the first support of 1.2918. On the other hand, a close on daily chart above 1.3129, will give the euro a bullish momentum, at least until the 1.3226 area.
Signals for May 06 – 11, 2013
Sell in case of trading bellow 1.3129, take profits are at 1.3015 and 1.2918, and stop loss is above weekly pivot.
Buy if it closes above 1.3129, take profit is at 1.3226, stop loss is below 1.31.