- 4H and 1H: The AUD/USD broke out of our triangle and declining channel. This was the first scenario discussed in yesterday's AUD/USD forex technical update. Currently the 4H chart shows a pause at 78.6% so a throwback may be provided from this probably temporary resistance. The RSI in the 4H chart is also testing 60. The bullish attempt is losing some steam, but if the market fails to reverse (weak throwback), a continuation in the near-term to 0.86 then 0.8750 is possible.
- The 1H chart shows the current rally paused at 9.8520. A pullback to 0.84 tests a confluence of SMA50, 50/61.8% retracement and 6-1 high. This is also a level the market paused on the way up in this rally so it may be prudent to pay some respect to it.
- If the market bottoms there, look for another swing towards 0.86.
Fan Yang Currency Analyst Commodity Trading Advisor