Yahoo Finance Morning Market Update – AUD/USD
The AUD/USD pair has begun its recovery after the fall in the recent days. Intraday bias returns on the upside at this point. A firm break of the pair at the 0.7593 resistance level will confirm resumption of whole rebound from the 0.7577 bottom level. In such case, the pair would target projection of 0.7618 next. On the downside, the pair trading below the 0.7577 support will turn intraday bias neutral first. But near term outlook will stay cautiously bullish as long as the 0.7577 support level holds.
In the bigger picture, the current development suggests that rebound from the 0.7577 level is developing into a medium term rise. There is no confirmation of trend reversal yet and we will continue to treat such rebound as a corrective pattern. A further rise is expected at the 0.7593 level. Breaking of the pair at the 0.7593 resistance level is needed to confirm completion of the rebound.
The recent fall on the Aussie has been put on hold after the pair found its support. A huge accelerating bull run has seen the market burst through the key of 0.7593.This looks to be a huge breakout above the newly formed resistance which has been rejected and the pair seems to fight the levels strongly this time. The market has been limited by the resistance band on numerous occasions in the past few candles but the weakness of the dollar has driven a breakout. Chasing the Aussie higher here would though be a move filled with a significant risk. Momentum is clearly strong and the pair staying with the bull run may be profitable in the very near term. However, if profit taking hits, it could be a sharp reversal. The bulls were looking strong after the sharp gains since last session. This move looks to hold and closing back above the resistance level would now be a corrective signal. Also, the pair’s oscillator was close to crossing back above the 20 level before today’s move. A move back above the 20 level on the four hour chart would now be corrective signals that a closing level back inside the band would now be a profit taking signal. The four hourly chart supports around the breakout at the 0.7557 level.
The AUD/USD pair approached from our first waited target at the 0.7593 level yesterday and bounced above it clearly to settle around the bullish trend line again. The pair has affected by its stochastic positively that approaches from the oversold areas now. Therefore, we believe that the chances are valid to rebound bullishly and resume the new bullish trend again. The pair breaching at the 0.7593 level will extend the bullish wave to reach the 0.7618 level, while holding above the 0.7593 level represents the most important condition to continue the expected rise.
The pair’s expected trading range for today is between the 0.7577 support and 0.7618 resistance levels.
Expected trend for today: Bullish
For more detailed analysis from the author, visit NoaFX.
For more detailed analysis from the author, please visit NoaFX.
This article was originally posted on FX Empire
