Australian Dollar vs US Dollar Rises to Approach Key Resistance

<p>AUD/USD (daily chart) as of December 17, 2012, has risen to approach key resistance around the 1.0600 price region. This level has served as an […]</p>

AUD/USD (daily chart) as of December 17, 2012, has risen to approach key resistance around the 1.0600 price region. This level has served as an important resistance area twice this past year – the first time in August and the second time a re-test with a clear shooting star candle pattern in mid-September – but has also served as a pivotal support/resistance level prior to 2012. The third bullish approach of the 1.0600 level has just occurred during a strong short-term uptrend extending back to the October 1.0150 area support re-test, but extends even further back to the June 0.9581 low. With short-term and longer-term trends both bullish, the 1.0600 level can be considered a key level to watch. In the event that price is able to break out strongly above this level, important potential resistance levels to the upside reside around 1.0750 and then 1.0850. If AUD/USD is unable to breach the key 1.0600 level significantly in the near-term, price could continue the range trading between 1.0150 and 1.0600 that has characterized the pair for the past five months.

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