Forex Technical Update
The AUD/USD is breaking above its narrow consolidation area. This slow crawl has the market now trading at a triangle resistance. A break above the Dec 21 high near 1.0220 would reflect a clean break above the triangle. A subsequent throwback that does not break below the 1.0180 area can confirm the bullish intent at least the short-term toward Dec highs near 1.0330.
The daily chart shows some targets above the 1.0330 pivot. An immediate resistance factor is the 200 day simple moving average near 1.0415, but in the sideways market since August, it has not bee respected. Above the 200SMA, we are looking at the 1.0770 pivot.
Failure of the market to rally above the 200day SMA suggests the market is bearish, especially if the RSI in the daily chart also fails to sustain a break above 60. In this scenario, a short term anticipation could be a return toward the triangle's middle area near 1.0025.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources