AUD/NZD 4H Chart 7:20PM 10/23/2012
October bull-run: The 4H AUD/NZD chart shows a bullish market in October. The RSI shows persistent bullish momentum. Price action has been held above a couple of rising trendlines. After breaking above the 200-SMA, the market consolidated, but held mostly above the 1.26 handle. It respected a rising trendline, 200-SMA as well. Momentum has neutralized a bit, but we are seeing some attempt at bullish continuation this week. The focus at the moment is at a near-term consolidation trendline resistance, above which the 1.2673 high is to be tested.
Bullish continuation targets: The daily chart shows a market that is in a retracement against a decline from 1.3073 since July that started reversing in October. The 50% retracement at 1.2721 is the next level to monitor above 1.2673, but there is more room to the upside. A retracement to 61.8% at 1.2804 will also be a reversion back to the 200-day SMA. This is probably a not too conservative, not too aggressive target for a bullish continuation outlook we are about to get from the 4H chart.
AUD/NZD Daily Chart 7:25PM 10/23/2012
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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