AUD/USD rises to approach major resistance level

<p>AUD/USD (daily chart) has risen once again to approach key resistance around the 0.9400 resistance level, a high that has not been reached for almost […]</p>

AUD/USD (daily chart) has risen once again to approach key resistance around the 0.9400 resistance level, a high that has not been reached for almost a month, since mid-May. This rise occurs after the currency pair rebounded in late May from the major 0.9200 support level, which has effectively served as solid support since the beginning of April. With this support in place, AUD/USD has formed a short-term base and a relatively tight trading range roughly between 0.9200 and 0.9400.

AUD/USD began to trade in this range after falling from its 2014 high of 0.9460 in early April, and then dropping further to break down below a key uptrend line that had extended back to January’s three-and-a-half year low of 0.8659.

Currently, with the 0.9400 resistance level directly to the upside, the currency pair could soon attempt to cross a major barrier. Any strong breach of the 0.9400 level could place AUD/USD on the road to recover the bullish trend that has been in place since January. A further break above the noted 0.9460 high should target the 0.9600 level once again. To the downside, the 0.9200 level continues to serve as major support within either a continued trading range or resumed recovery scenario.

Join our live webinars for the latest analysis and trading ideas. Register now

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.

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