FXstreet.com (Córdoba) - The Australian Dollar jumped during the European session and rose to 0.9120 (intra-day high). But rebounded and fell to 0.8980. In the last hours AUD/USD managed to get back above 0.9000 and currently trades at 0.9015/20, 0.75% above today's opening price. Earlier in the day, the pair bottomed at 0.8904 posting a fresh 3-week low.
According to James Chen, technical analyst at FX Solutions: This bullish price action represents the fifth instance of this currency pair respecting the trendline. Continued bullishness off this bounce would be displayed on a strong breakout above the short-term downtrend resistance line extending from the 0.9325 14-month high. In the event of this breakout, the next major upside target resides around that 0.9325 high. And in the event of a further break above that high, the key upside resistance target to watch for would be the all-time high around 0.9850, which coincides with an important 161.8% Fibonacci extension (the low-to-high Fibonacci span being measured from the low on 10/2/2009 to the 14-month high on 10/21/2009).