AUD/USD Continues Rise after Downtrend Breakout

AUD/USD (daily chart as of April 9, 2014) temporarily retreated from the major resistance of 0.9270 and found support around 0.9200 (very close to the important support level of 1.9170) before reaching a fresh high yesterday at 0.9385. This is the second resistance level mentioned in our March 31 analysis.

The currency pair is now riding on a steeper support line (line 2 on chart) that connects the lows since March 20. If price can hold the new support line, more upside momentum may be expected with a possible test of the third resistance at 0.9450.

If the pair is unable to hold line 2, it could turn down to seek further support at 0.9270, and potentially line 1 or the daily EMA 50. The FOMC minutes will be released later today. Fed Chair Yellen mentioned earlier that the monthly bond purchases could end this fall and the central bank may start to increase interest rates around six months later.

Support levels below:
1st support: line 2
2nd support: 0.9270/95 (March 27 high)
3rd support: line 1 or daily EMA 50

Resistance levels above:
1st resistance: 0.9385 (multiple lows and highs)
2nd resistance: 0.9450 (November 19, 2013 high)
3rd resistance: 0.9540 (November 6, 2013 high)