AUD/USD continues range trading within bullish trend

<p>AUD/USD (daily chart shown below) has remained in a relatively tight consolidation within the past four weeks after hitting a 2014 high just above 0.9500 […]</p>

AUD/USD (daily chart shown below) has remained in a relatively tight consolidation within the past four weeks after hitting a 2014 high just above 0.9500 at the beginning of July.

This consolidation has generally fluctuated around the 50-day moving average, and well above the 200-day moving average.

Since that year-to-date high, the currency pair has maintained key trading range support around the 0.9325 level, which is also the 62% Fibonacci retracement of the most recent rise from May’s 0.9200-area lows up to the noted 0.9500-area high in July.

AUD/USD currently remains in bullish recovery mode, as the trend bias since late January’s long-term low of 0.8659 has been decidedly to the upside.


AUDUSD technical analysis chart 28.07.14


This bullish trend bias appears likely to continue further, as long as the currency pair is able to continue trading above major support around 0.9200. Any break below the noted 0.9325 current support could prompt a pullback towards this 0.9200 level.

To the upside, the bullish thesis will have been confirmed on a breakout above the 2014 high of 0.9500, in which case the major upside target resides around the 0.9600 level, which has been the targeted objective since the breakout of a large, inverted head-and-shoulders pattern in March.


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.

For further details see our full non-independent research disclaimer and quarterly summary.