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 0.9405 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 seen stalling now above 0.9400 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 the latest break back below 0.9210 to help reaffirm our outlook. POSITION: SHORT @0.9280 FOR AN OPEN OBJECTIVE; REVISED STOP 0.9280.

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