Forex Technical Update
The AUD/USD continues to trade in a rising channel. After the FOMC announced extending its low interest rate period throughout 2014, the AUD/USD respected a previously broken declining trendline (seen as a triangle resistance the daily chart), and surged past the 1.0565 high. If the initial bounce of broken resistance did not confirm the breakout, this did. The 4H chart shows no stopping at the moment, but in the near-term we might be a bit overbought as we enter the 1/26 US session pushing at the 1.07 handle. To maintain a sharp bullish outlook toward the 1.0763 high (seen in the daily chart below). a throwback now should not break below 1.0545, preferably not even crossing the 1.0565 pivot.
The daily chart shows that a resistance pivot exists at the 1.0763. Really the resistance should be seen as an area between 1.0750 and 1.0763. Then if we do clear 1.0770, the market opens up the 1.1079 historic high.
Fan Yang CMT is the Chief Technical Strategist of IBTRADE and FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.