Forex Technical Update
The 1H AUD/USD chart is telling us that the corrective rally since Dec 15 might not be over. So far the market has shown corrective structure. The rally toward 1.0020 was in an abc pattern before anchoring into a declining pattern, which also had an abc structure before the market rallied above the projected resistance. It is possible that so far we have completed an AB leg of an ABC correction that can extend the current correction higher. A C=A projection points toward 1.0060, near the 38.2% retracement and 200 hour simple moving average. There can be resistance expected in the 1.0040-1.0060 area.
Above the 200 hour SMA, the market really opens up for an extended correction. 61.8% retracement at 1.0190 would be the next important resistance especially as the market nears the projected triangle resistance seen in the daily chart.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources