Forex Technical Update
Sling Shot and Swing Projection:
- The AUD/USD broke above the 200SMA in the 1H chart, and then treated it as support in the short-term. This type of action is known as a slingshot.
- Price action first stalled in a narrow range above the 200SMA, and then broke higher during the most liquid part of the trading session (in first half of the US session, where European trading is still active).
- It now continues to be in a correction rally, and the USD is losing across the board, giving it more fuse to push higher.
- The RSI is tagging 70 reflecting short-term bullish momentum.
- A swing projection targets 1.06.
- The 4H chart shows that 1.0630 is the 61.8% retracement level, so we can expect some resistance in this zone (1.06-1.0630).