FXstreet.com (Barcelona) - Australian Dollar strengthening against the US Dollar has continued today' with the pair extending its bounce at 0.8585 low on Monday and upside movement sharpened on Wednesday's Asian and European sessions as the Aussie rallied from 0.8700 to 0.8835, fresh 13 month high on better then expected Australian retail sales figures.
Commerzbank, in the report published by its Technical analyst Karen Jones, affirms that Aussie maintains the upside pressure: AUD/USD continues to inch slowly higher and we remain on course for the .8875/July 2007 high then .8940/.9030. This represents the 76.4% and the 78.6% retracement of the 2008 -2009 sell off - it is our short term target and we would expect to see profit taking at this zone.
On the other hand, Greg Holden, ForexYard's expert, says that AUS/USD is overbought in 30 min charts, indicating downward pressure: The price of this pair currently floats in the over-bought territory of the 30 min. chart's RSI, indicating a downward pressure. The impending bearish crosses on the hourly MACD and Slow Stochastic both support the notion of a downward move. Those participating in the forex market today would be wise to pay attention to this pair as the downward pressure appears to be getting stronger and a bearish move may be impending.