AUD/USD (daily chart) as of March 15, 2013 made a substantial bullish move yesterday to breach both the 1.0350 previous resistance level as well as the 200-period simple moving average. This strong breakout above a confluence of resistance follows a major rebound that formed a hammer candle reversal off a key support level around 1.0150 early last week. After that rebound, price began its ascent once again within a sizeable 8-month trading range between 1.0150 support to the downside and 1.0600 resistance to the upside.
After breaking out above the intermediate 1.0350 resistance level and reaching a high just a pip short of 1.0400 yesterday, price has fluctuated near those highs today. With further bullish momentum, AUD/USD appears prepared to fulfill another bullish leg of the entrenched trading range, with a well-defined intermediate-term objective towards the trading range’s top border, around the 1.0600 price region.
James Chen, CMT
Chief Technical Strategist
City Index Group
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