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