AUD/USD Advances to Resistance off Inverted Head and Shoulders Reversal
James Chen September 16, 2013 8:40 PM
<p>AUD/USD (daily chart) has advanced further to approach major resistance around the 0.9400 level, establishing almost a three-month high for the currency pair. This advance […]</p>
AUD/USD (daily chart) has advanced further to approach major resistance around the 0.9400 level, establishing almost a three-month high for the currency pair. This advance continues a bullish leg that has been in place for the past two weeks since the lows around 0.8900 in late August and early September. Earlier this month, this bullish leg also broke out above the “neckline” resistance of a well-formed, inverted head-and-shoulders reversal pattern with its left shoulder around the mid-July 0.9000-area low, its head around the early August 0.8850-area low, and its right shoulder around the noted late August 0.8900-area low. After breaking out above that neckline, price also broke out above the downward-sloping 100-day moving average. With key support now residing around the 0.9225 level, a breakout above the current 0.9400 resistance would help confirm the potential upside reversal, with the next major resistance objective to the upside residing around 0.9650.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.