Price action on AUD/USD, a daily chart of which is shown, began the new trading week by hitting a high that closely approached key 0.9400 resistance level, before retreating.
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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.)
This 0.9400 resistance level represents the long-term, 15-month high hit in mid-November. The current bullishness occurs within the context of a medium-term uptrend extending from the early-February low.
Further bullish momentum that subsequently breaks out strongly to the upside above the 0.9400 resistance region would represent a very significant price event that could potentially go on to target further upside resistance in the 0.9650 price region.
By James Chen, chief technical strategist, FXSolutions.com
