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Dec 21, 2014

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Home » Featured » AUD/USD Has Bullish Bias and 1.06-1.0620 in Sight

AUD/USD Has Bullish Bias and 1.06-1.0620 in Sight

Forex Technical Update

Previous: AUD/USD at the Cusp of Bullish Continuation (11/26)

AUD/USD 4H Chart 11/28/2012 3:50PM EST

AUD/USD 11/28/2012 4H chart

New Highs: The AUD/USD has been rallying since bouncing off the 1.03 handle on Nov. 16. After clearing above a key resistance area around 1.04-1.0420, it broke to new highs for November. The RSI popped up above 60 and touched 70 signaling nascent bullish momentum after a period of sideways momentum in November. During the 11/28 session, the AUD/USD fell from 1.0490 back to 1.0425, near the previous resistance area before bouncing up sharply back toward the 1.0490 high.

Targets: If these initial bullish continuation signs are followed with further rally, the next key resistance/target will be the 1.06-1.0620 area, which is the resistance and highs for October and September. Note that if the RSI gets pushed to 70, it will reflect bullish continuation momentum, something we haven’t seen in the 4H chart since the rally in June that started from 0.9590, which eventually reached 1.06.

Failure: The failure to clear above 1.05 psychological handle, and fall back below 1.04 would be a sign that the market is still consolidating sideways, but expanding higher highs and perhaps a lower low. Downside below 1.04 would be a pivot at 1.0335, the 1.03 handle. Below that, further bearish development can open up the 1.0150-1.0180 October 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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.

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