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 to fresh 2009 highs by 0.9375 ahead of the latest minor setbacks. However, given 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 materially extend gains beyond the previous 0.9330 2009 peak and rolling back over through neckline support at 0.8905. The daily RSI has failed to confirm the latest bout of strength and we look for a break back below 0.9270 on Thursday to help reaffirm our outlook. A short position was triggered on Wednesday at 0.9280.  POSITION: SHORT @0.9280 FOR AN OPEN OBJECTIVE; STOP 0.9410.

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