AUD/USD (daily chart) has sustained the bullish run that has been in place since the 1.0150 region low in October. This short-term bullish trend occurred after price established 1.0600 resistance in early August, then established 1.0150 area support in early September, then re-tested 1.0600 resistance in mid-September with a shooting star candle, and finally re-tested 1.0150 support in early October. After the latest bearish retracement down to 1.0150 in early October, price began the current bullish run that is outlined by a rising wedge pattern. Rising wedges can be considered potential bearish patterns if there is a downside pattern break. If this occurs, the key 1.0300 level could once again serve as potential intermediate support on a substantial move to the downside. The overall trend for AUD/USD, however, has been bullish from the June lows. A key level to watch in the event of continued upside trend momentum would be the 1.0600 level. In the event of a strong breakout above that level, which could confirm an uptrend continuation, price could move towards re-tests of further potential upside resistance around the 1.0750 and 1.0850 levels.
James Chen, CMT
Chief Technical Strategist
FX Solutions
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