Forex Technical Update
The AUD/USD has been consolidating with a slight bearish tilt. The RSI in the 4H chart has been stuck between 40 and 60 reflecting the consolidation momentum. During the Asian session the market pushed the Aussie higher, breaking the previous pivot near 1.08. The RSI also pushed above 60.
A second round of LTRO (Long Term Refinancing Operation) came in with almost 530 billion euro injection into the Eurozone banking system. Risk sentiment is positive because this might help confidence, and the USD is therefore pressured.
AUD/USD is now attacking and cracking the 1.0840 pivot. A close above 1.0850 should help confirm the bullish continuation outlook toward the 1.10-1.1079 record highs.
At this point, a throwback can break back below 1.08, but if it falls below 1.0750, the bullish continuation scenario might be in trouble, and the market could still be in a sideways mode.
Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.