The pivot points are important support and resistance levels, it serves to identify whether the price of the pair may decline. Thus, the pivot points may quite successfully serve as input and output indicators. The way the pivot points are operated and the strategy is used depend on the type of an investor.
AUD/USD weekly and monthly pivot points for this week are 1.02463 and 1.0389 respectively.
The Australian dollar is below the weekly pivot as well as the Moving Average of 200 periods (blue). Therefore, the pivot points show the following.
The weekly pivot level of 1.0246 serves as resistance, a close above this level can change the downtrend with targets set for the second resistance of 1.0497(W_R2).
On the other hand, the downward pressure will continue to increase below the weekly pivot which aims to the second weekly support around 0.9995 (W_S2).

Signals for 08 - 12 October, 2012

Buy long above weekly pivot at 1.0246 with take profit at 1.0341 and 1.0497, stop-loss is bellow weekly pivot.

Sell if pullback at 1.0246 with take profit at 1.0090 and 0.9995, stop loss above weekly pivot.

_____WEEKLY_____
Weekly - R3 = 1.0592
Weekly - R2 = 1.0497
Weekly - R1 = 1.0341
Weekly Pivot = 1.0246
Weekly - S1 = 1.0090
Weekly - S2 = 0.9995
Weekly - S3 = 0.9840

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 _____MONTHLY____
Monthly - R3 = 1.1071
Monthly - R2 = 1.0847
Monthly - R1 = 1.0613
Monthly Pivot = 1.0389
Monthly - S1 = 1.0155
Monthly - S2 = 0.9931
Monthly - S3 = 0.9697