Forex Technical Update

Previous: AUD/USD Falls from New High to New Low for the Week (8/10)

AUD/USD 4H Chart 8/13/2012 7:10AM EDT

"AUD/USD

The AUD/USD has not found a direction since last week where the market made both new highs followed by new low for the week. The 4H chart shows the market back in the middle of the consolidation zone. While it did not show direction, the pair does retain the bullish momentum going into last week, based on the 4H time-frame where the RSI remains above 40 after tagging 70. It is possible that the higher high and lower low within a flat market was an expanded flat.

In the 1H chart, the momentum shows a different story. The RSI did tag 30, and has so far failed to push above 60. However, it is about to break with some further bullish price action. Price action is also breaking above a projected near-term trendline.

This combination puts the bias on the expanded flat scenario as opposed to a topping scenario, which suggests bullish continuation. Note price action pushing back above the 200-hour SMA and then respecting it as support, another clue that bulls can be reclaiming the market.

In the near-term, the bullish target should be limited to the 1.06-1.0615 area of resistance factors as well as a swing projection. Above these highs, the AUD/USD is exposed to the 2012 high at about 1.0845.

AUD/USD 1H Chart 8/13/2012 7:15AM EDT

"AUD/USD

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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.