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(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.)
Though technically still entrenched within a sideways consolidation, AUD/USD (a daily chart of which is shown) has displayed a marked bullishness since the early-February low. This bullishness has prompted the pair to rise above several key resistance levels to the point where the 15-month high just above 0.9400 is not far off.
During the course of the bullish move from the February low, price has formed a well-defined uptrend support line. Currently, AUD/USD has just established a new seven-week high and appears poised to move yet higher. With a potential upside resistance target in the noted 0.9400 price region, in the event of a bearish breakdown below the current uptrend support line, further downside support resides around the 0.8800 price region.
By James Chen, chief technical strategist, FXSolutions.com
