AUD/USD (daily chart) has pulled back slightly from key resistance around the 1.0600 price region, an important level that has been tested several times within the past 5 months and which was re-tested yet again just late last week. This latest attempt and failure to breakout above 1.0600 indicates its continued strength as a major resistance level. With the bullish trend still intact both on a longer-term and shorter-term basis, despite the bearish retracement that occurred towards the end of 2012, a breakout above 1.0600 could be considered a key event to watch for. In the event of this breakout, which would confirm a bullish trend continuation, price could follow-through towards further potential resistance around the key 1.0750 price region.
James Chen, CMT
Chief Technical Strategist
FX Solutions
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