AUD/USD continues strong bullish stance
James Chen April 14, 2014 8:05 PM
<p>AUD/USD (daily chart shown below) has continued to take on a strong bullish stance as it has reached up to major resistance around the key […]</p>
AUD/USD (daily chart shown below) has continued to take on a strong bullish stance as it has reached up to major resistance around the key 0.9400 level. Last week, the pair hit a 5-month high of 0.9460 before pulling back slightly.
The currency pair has generally been in a sharp advance since the late January long-term low of 0.8659. That low eventually transformed into a bottoming pattern in the form of an inverted head-and-shoulders formation.
AUD/USD broke above both the head-and-shoulders neckline and the 200-day moving average in late March, and has continued to climb sharply since then.
The recent rise in the AUD/USD provides an indication that the currency pair may have potentially hammered out a bottom and could indeed be in the midst of a rotation to the upside.
A flag pattern breakout occurred in early April, which had its first target around the 0.9400 level. Having just reached and surpassed that target level, while continuing to maintain a strong bullish stance, AUD/USD appears poised to target its head-and-shoulders price objective, around the 0.9600 level.
Short-term downside support for the pair currently resides around 0.9300, the approximate top of the broken flag pattern.
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.