Price action on AUD/USD, a daily chart of which is shown, continues to display some robust bullishness on its sustained rebound off the late-December low.
Click to Enlarge
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
This rebound has broken out above several resistance levels, including a short-term downtrend resistance line extending from the 15-month high around 0.9400 that was hit in mid-November. Currently, price has once again revisited strong resistance in the 0.9325 price region, just short of the noted 0.9400 long-term high.
If the current bullishness continues on to a breakout above the current resistance and that 0.9400 high, price will have established a new 17-month high and could subsequently target further key resistance in the 0.9650 price region.
To the downside, a breakdown below the most recent short-term uptrend support line extending from the late-December low could target strong intermediate support in the 0.8950 price region.
By James Chen, chief technical strategist, FXSolutions.com
