AUD/USD Holding Above 1.04 After Breakout

\ 10:45 PM EST \ November 6th, 2012

Forex Technical Update

Previous: RBA Decision and Technical Setups for AUD Pairs (11/6)

AUD/USD aH Chart 11/6/2012 10:40PM EST

AUd/USD 11/6/2012 1H chart

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.

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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