Forex Technical Update
AUD/USD aH Chart 11/6/2012 10:40PM EST
Breakout: The AUD/USD strengthened after a relatively less-dovish-than-expected RBA interest rate statement. This propelled the AUD/USD a recent resistance zone between 1.0395 and 1.0410. It then held under the 1.0450 handle during the 11/6 session and retraced.
Retracement: The correction was a brief correction compared to the swing so far in November, not even 38.2%. It came down to the previous resistance pivot of 1.0410 and rebounded sharply. The 1H RSI held above 40, and is about to break back above 60, which would reflect further development of bullish momentum. Price pushing above 1.0450 extends the breakout with another swing, exposing further resistance levels.
Bullish targets: As noted in the previous update, the bullish outlook sees 1.0465 resistance pivot in the near-term, then around 1.0525-1.0530, and then the 1.0623 September high, before exposing the 2012-high of 1.0850.
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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