AUD/USD broke the narrowing channel I was talking about two days ago and made an upward break. Very close to the end of the week, it trades higher and aims for new targets. AUD/USD long is live and kicking.
On March 11th, I wrote that AUD/USD is squeezed in a narrowing channel, and that the break is close. The uptrend support and downtrend resistance were broken well before the lines were about to meet (end of March).
Between Thursday and Friday , AUD/USD broke the downtrend resistance line and moved upwards. AUD/USD now trades at 0.6571.
Apart from the AUD/USD fundamentals mentioned in the previous post, a weakening of the dollar across the board helped push this currency pair upwards. Also the price of gold, strongly related to the Aussie, went up.
The targets for this pair are 0.68, and later 0.72, where strong resistance is expected.
The only surprise was with the AUD/NZD pair. The RBNZ lowered the interest rate in New Zealand, but hinted expressed great optimism, quite rare these days. The New Zealand dollar made gains across the board with NZD/USD at 0.5329, 200 pips+ rise in since the announcement.
I’ll update on the G20 summit in Sussex during the weekend. The summit of major financial figures from 20 industrial countries are preparing the G20 summit of world leaders in the beginning of April. The financial summit in Sussex, happening right now, might release statements that will influence the forex market.
Have a great weekend!