Forex Technical Update
AUD/USD 4H Chart 11/1/2012 2:15PM EDT
Resistance: Following up with yesterday’s (10/31) AUD/USD update, the 1.04 resistance area is starting to crack. the pair has been at it throughout October in an ascending triangle manner, with higher lows but the high being flat in the 1.0395-1.0410 area. As you can see in the 4H chart, the lower resistance of 1.0396 has broken, and the AUD/USD is now testing the next resistance pivot at 1.0410. The RSI is at 60, above which a bullish continuation momentum is at hand.
Breakout target: A break above 1.0410 opens up higher resistance pivots in the 1.0525-1.0530 area, and then the August and September highs near 1.0620.
Breakdown: A break below a near-term support pivot at 1.0350 refocuses the market on the support factors which area closer to 1.03. A break below 1.03 also should clear the rising October trendline support, and open up a bearish outlook, exposing the 1.0150 and 1.0175 lows.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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