AUD/USD:Wednesday’s aggressive rally has called into question the validity of our bearish outlook, with the market racing higher to take out some key short-term resistance by 0.9080 and close back above 0.9100. Still, gains have stalled out just ahead of the 78.6% fib retrace off of the August high-low move, and this does keep bearish bias alive for now, but with much less conviction. In the interim, the key levels to watch above and below come in by 0.9120 and 0.8860 respectively and we will look for a break on either side for clearer directional bias.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com If you wish to receive Joel's reports in a more timely fashion, e-mail jskruger@fxcm.com and you will be added to the "distribution" list. If you wish to discuss this topic or any other feel free to visit our Forum page
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
