June 23, 2014 – AUD/USD (daily chart) has advanced to closely approach its year-to-date high of 0.9460, which was established in early April. For almost three months, the currency pair has been entrenched in a trading range between the key 0.9200 support level to the downside and the noted 0.9460 high to the upside. The current advance within this trading range occurs on a month-long rise from 0.9200 support that has gone on to break out above the 50-day moving average as well as tentatively above the 0.9400 resistance level.
Currently, with the 0.9460 year-to-date high directly to the upside, the currency pair could soon attempt to cross a major barrier. Any strong breach of the 2014 high could place AUD/USD on the road to recover the bullish trend that has been in place for the past five months since late January. In the event of this breakout, AUD/USD could rise to target the major 0.9600 level objective once again. To the downside, with any further range trading below the 0.9460 high, the 0.9200 level continues to serve as major support.
James Chen, CMT
Chief Technical Strategist
City Index Group
Forex trading involves a substantial risk of loss and is not suitable for all investors. This information is being provided only for general market commentary and does not constitute investment trading advice. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision.
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