Forex Technical Update
AUD/USD Daily Chart 10:55AM EDT 6/29/2012
EU Summit headlines caused risk-on trading. Risk-on trading pressures the USD and pushed up the commodity currencies like AUD. Looking at the daily chart we see that the 6/29 is the strongest bullish (or bearish )daily candle we had in 2012. It also pushed above a projected declining trendline that went back to the Feb and 2012 highs near 1.0855.
We are testing the 200-day simple moving average and the March consolidation support area as resistance. The next resistance factors are in the 1.0360-1.0380 area. Here we have 61.8% retracement and a resistance pivot seen in Dec 2011, and Jan. 2012. Then we have the 1.05 handle, which is also near the resistance pivot for at the end of April that led to the swing down to about 0.96.
If there is a pullback, the market should really remain above the 1.02 handle for a clear indication of bullish continuation. However, even a stronger throwback is within the bullish outlook as long as it remains above the 1.0125 pivot seen in the 4H chart. Otherwise, the outlook is unclear, and we will need more clues to assess what the market is setting up to next.
AUD/USD 4HChart 11:00AM EDT 6/29/2012
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.
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.