October 9, 2013 – AUD/USD (daily chart) has been rising in a partial recovery after having made a potential trend reversal to the upside in July, August, and September with an inverted head-and-shoulders pattern. The neckline of this pattern was broken to the upside in early September, and the pair subsequently reached up to a high of 0.9527 before pulling back in a steep falling wedge pattern. The pair then broke out above that pattern to resurface above the 0.9400 level, and is currently keeping its head above this level in a slightly bullish consolidation. Further upside momentum on the current bullish reversal that breaks out above the noted 0.9527 high could move the pair towards key upside resistance objectives around 0.9650 and 0.9850. Strong downside support on any subsequent pullbacks currently resides around the 0.9300 level.
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.
Share
