Forex Technical Update
AUD/USD 4H Chart 7/16/2012 3:00PM EDT
3:00PM EDT 7/16: Trading up at 1.0250, AUD/USD is breaking above a declining trendline that connects the 1.0327 high on July 5 with the 1.0279 high on July 11. Although the market broke below a rising trendline support from June, it has failed to show bearish development and is therefore still sideways to bullish in the short-term. The bullish outlook for now is limited to the 1.0327 high.
Above 1.0327, we might introduce some further bullish outlook in the short-term, but we have to consider this in the context of a medium term sideways market seen in the daily chart.
The daily chart shows an AUD/USD pair without clear signs of direction. The 200-day SMA for example is more or less flat. In this type of dynamic, it can only be said that there is a gravity back toward the 200-SMA as price gets further away from it. In this case, if the market gets up to 1.0750-1.0850 area, we can look for some significant resistance and throwback toward the "mean" price action around 1.03.
AUD/USD Daily Chart 7/16/2012 3:05PM EDT
Fan Yang CMT is a forex 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.
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