September 9, 2013 – AUD/USD (daily chart) has advanced to hit a three-week high, just short of the late August high at 0.9232 which was reached on a recovery from early August’s 0.8850-area multi-year low. The current bullish move has risen since the beginning of September from a low slightly above that 0.8850 support level. In the process of the rise, the pair has broken out above the key 0.9000 psychological level and is currently approaching resistance around the 100-day moving average. Whether this advance represents an approximate double bottom reversal remains to be seen, as the peak of the double bottom has not yet been breached to the upside. If it is breached significantly, further bullish momentum on a potential recovery should meet key resistance around the 0.9400 level, followed further to the upside by the major 0.9650 resistance level. A turn back to the downside from resistance has strong support once again at the 0.9000 and 0.8850 levels.
James Chen, CMT
Chief Technical Strategist
City Index Group
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