Forex Technical Update
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AUD/USD 4H Chart 9/11/2012 8:15AM EDT
The AUD/USD has indeed put together a sharp correction to where I last noted resistance factors: around the 1.04 handle. It has since been consolidating a bit since finding resistance at exactly 1.04, retracing down to 1.0322 before picking up the rally again. Note that the 1H RSI reading held above 40 after breaking above 70 and falling back. It is now pushing above 60 and kissing 70, reflecting bullish continuation momentum.
The 4H chart shows that there is still some more room before the AUD/USD is challenged by a cluster of resistance factors. The main ones would be:
1) the declining trendline going back to the August high of 1.0612. A rally for another session or so can bring the price to this trendline near 1.0440.
2) Also at 1.0442, there is the 61.8% retracement.
3) The 1.0443 level is a resistance/support pivot - resistance on 7/19/2012, and support on 8/2/2012.
Clearing 1.0450 introduces the bullish outlook, with focus back toward at least the 1.0612 August high, especially if this bullish move extends after the FOMC meeting on Thursday (9/13), where QE3 or increased prospect of it can pressure the USD dramatically.
AUD/USD 4H Chart 9/11/2012 8:20AM 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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