AUD/USD Technical Analysis: 10-Month Trend Resistance Broken

AUD/USD Technical Strategy: FLAT

  • Australian Dollar soars through ten-month trend resistance
  • Short AUD/USD trade closed as prices aim above 0.73 mark
  • Long-term trend bias still bearish following corrective rise

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The Australian Dollar surged upward against its US counterpart, putting in the largest one-day rally in almost two years and breaking resistance guiding it steadily lower since early January. The breakout suggests the near-term bearish bias has been invalidated, opening the door for upside follow-though.

A daily close above resistance in the 0.7304-15 area exposes a minor barrier at 0.7382, and then the 0.7452-61 region. Initial support is at 0.7160, a former range top marked by the October 17 high. Reversing back below that paves the way for a challenge of the base from which the latest rally has been launched at 0.7041.

Australian Dollar vs US Dollar chart - daily

Profit has been booked on the short AUD/USD trade triggered at 0.7608 and subsequently scaled up – first near 0.7530Article source: