AUD/USD Recovers from Dip to Reach for Retest of Recent High

<p>AUD/USD (daily chart) as of April 3, 2013 has resumed its bullish range move to reach for a retest of last week’s two-month high just […]</p>

AUD/USD (daily chart) as of April 3, 2013 has resumed its bullish range move to reach for a retest of last week’s two-month high just shy of 1.0500 resistance. The dip that occurred during the latter half of last week pulled back to around the 200-day moving average support, hitting a low at 1.0384 with a hammer candle before recovering during the first half of the current trading week.

This occurs within a steep bullish trend channel extending back to the key 1.0150 support area, which occurs within the larger context of a solid trading range between 1.0150 support and 1.0600 resistance that has been in place for the past nine months.

In order for price to fulfill its long-standing trading range, a breakout above 1.0500 would have a clear objective around the top of the range, in the 1.0600 resistance region. Key support within this range play currently resides around the 1.0350 price area.

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