AUD/USD (daily chart as of March 31, 2014) broke out above the medium-term downtrend line (as shown on the chart) on March 24 with a strong bullish candlestick, followed by three up-sessions, and reached a high of 0.9295 on March 27.
The breakout has been quite strong, breaking several resistance levels, including 0.9085, 0.9130/70, and touching major resistance at 0.9270. Note that the candlesticks of March 27 and 28 formed a potential “harami” pattern (gray circle on chart) indicating short-term bearish pressure.
If price is unable to break 0.9270, it would confirm the above warning signal by trading lower to correct the recent surge. The pair needs to hold 0.9130/9085 and the short-term uptrend line to keep up the upside momentum. Traders will be focusing on the RBA interest rate decision later today and its outlook on the currency rate.
Support levels below:
1st support: 0.9170/30 or short-term uptrend line
2nd support: 0.9085 (January 13 high) or daily EMA 50
3rd support: 0.8995 (March 20 low)
1st support: 0.9170/30 or short-term uptrend line
2nd support: 0.9085 (January 13 high) or daily EMA 50
3rd support: 0.8995 (March 20 low)
Resistance levels above:
1st resistance: 0.9270/95 (March 27 high)
2nd resistance: 0.9385 (multiple lows and highs)
3rd resistance: 0.9450 (November 19, 2013 high)
1st resistance: 0.9270/95 (March 27 high)
2nd resistance: 0.9385 (multiple lows and highs)
3rd resistance: 0.9450 (November 19, 2013 high)
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