AUD/USD (daily chart) as of March 15, 2013 made a substantial bullish move yesterday to breach both the 1.0350 previous resistance level as well as the 200-period simple moving average. This strong breakout above a confluence of resistance follows a major rebound that formed a hammer candle reversal off a key support level around 1.0150 early last week. After that rebound, price began its ascent once again within a sizeable 8-month trading range between 1.0150 support to the downside and 1.0600 resistance to the upside.
After breaking out above the intermediate 1.0350 resistance level and reaching a high just a pip short of 1.0400 yesterday, price has fluctuated near those highs today. With further bullish momentum, AUD/USD appears prepared to fulfill another bullish leg of the entrenched trading range, with a well-defined intermediate-term objective towards the trading range’s top border, around the 1.0600 price region.
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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