Forex Strategy - AUD/USD Upside Breakout Opens Advance To 0.9160
- AUD/USD Technical Strategy: Longs preferred
- Break of 0.9085 mark on daily opens further gains
- Signals of intraday weakness may be overshadowed
The AUD/USD has broken a key technical level on the daily which opens up the potential for further gains for the pair. This may overshadow a bearish reversal signal offered by the Gravestone Doji on the four hour chart below. Intraday resistance remains at the 0.9120 level.
AUD/USD: Gravestone Halts Intraday Advance
4 Hour Chart - Created Using FXCM Marketscope 2.0
A Hammer candlestick on the daily chart and clearance of the 0.9080/85 resistance level supports a bullish technical bias for the Aussie over the near-term. The December 2013 high near 0.9160 offers a potential upside target.
AUD/USD: Break of Resistance Opens Further Gains
Daily Chart - Created Using FXCM Marketscope 2.0
It should be noted that the upcoming FOMC March meeting offers substantial fundamental event risk for the US Dollar. The price action resulting from the decision may negate technical signals offered. Traders can watch live coverage of the event in the DailyFX Plus area of the site.
By David de Ferranti, Market Analyst, FXCM
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.