Forex: AUD/USD offered below 1.05; maintains bullish scope?

FXstreet.com (San Francisco) - AUDUSD rallied to levels above 1.0500 on Thursday, extending as high as 1.0515 to 3-month highs, but spot managed to peel back and close the North American session at 1.0484, gaining 0.3% on the day. "There are still large stops placed above 1.0525 which may prove magnetic today but the more likely scenario is continued range trading with a modest bullish bias," says Sean Lee, Founder of FXWW.

As Greg McKenna, Chief Executive at GlobalFX recently noted in his longer term outlook for the AUD: "it is going to be stronger for longer so unless we get an economic catastrophe either in Australia or somewhere in the world the Aussie is going to remain well bid."

Spot is gently offered in early Asia-Pacific trade this Friday, having inched down into the 1.0470 price zone. If the downward momentum continues in the sessions ahead, AUDUSD may find support at 1.0455 (Nov 14 high), 1.0427 (21-day EMA) and at 1.0410 (Oct 18 high). Should bulls regain the upside, and manage to push above the 1.0525 mark, bullish targets lie at 1.0545 (Sep 21 high) and 1.0565 (Feb 1 low).