Forex Technical Update
AUD/USD 4H Chart 10/31/2012 10:00AM EDT
Support and Resistance : October price action for AUD/USD has so far been slightly bullish, but in a choppy, consolidation manner as can be seen in the 4H chart. There is a rising band of support from the 1.0148 October low that has held lowers higher throughout the month. However, the October high near 1.0410 remains intact. There is resistance holding in the 1.0395-1.0410 area, as we get into the 10/31 US trading session, we see another attack of this resistance area, so far with a rejection.
Momentum: The momentum is not clear, but there is some development. The latest swing made the 4H RSI kiss 70, and it has since held above 40. Now a push back above 60 would indicate momentum tilting to the upside. This should confirm a breakout above 1.0410, especially if the reading can be pulled to 70.
Targets: A bullish break opens up some pivots near 1.0530 and the August and September highs around 1.0620. A push back below the 1.03 handle holds off this bullish outlook, and puts the focus back toward the recent consolidation lows in from 1.0180 down to 1.0150.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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