AUD/USD Continues Rise from Support within Trading Range
James Chen March 12, 2013 4:35 PM
<p>AUD/USD (daily chart) as of March 12, 2013 has continued its rise from major support within the wide, 8-month trading range. This climb began on […]</p>
AUD/USD (daily chart) as of March 12, 2013 has continued its rise from major support within the wide, 8-month trading range. This climb began on a key hammer candle last week that indicated yet another upside turn from strong support around 1.0150. Since July 2012, the clear horizontal trading range has confined price between this 1.0150 downside support and 1.0600 upside resistance. The pair has rebounded between these levels at least four times for each level within the past 8 months.
Last week was no different. Advancing from the well-formed hammer candle at 1.0150 support, price has now approached intermediate resistance around 1.0350. This level not only represents a prior support/resistance pivot zone, but the 200-period simple moving average is also currently right around this price area. In the event of a breakout above this resistance confluence, price could make a medium-term move back to the upside towards the top border of the trading range around 1.0600.
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.