aud-usd

AUD/USD – Remains very well bid on any form of a dip with the underlying structure still grossly constructive. The market has most recently broken back above the 78.6% fib retracement off of the 0.9325-0.8905 move to now suggest a full retracement back to 0.9325 over the coming sessions. However, giver the overbought weekly studies, we are not entirely convinced of the current recovery rally and would not rule out the possibility for a major double top formation with the market failing to extend gains beyond 0.9325 and rolling back over through neckline support at 0.8905. Only a close back above 0.9325 would negate and give reason for pause.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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