Prices broke above key long-term trend resistance set from late July 2011, hinting at a significant upside reversal in progress. A bearish Rising Wedge pattern remains valid however and negative RSI divergence warns of ebbing upside momentum. A break above the wedge top (now at 1.0515) initially targets the August 9 close at 1.0578. Alternatively, a drop below trend line resistance-turned support (1.0464) exposes the wedge bottom at 1.0423.

Forex_Analysis_AUDUSD_Classic_Technical_Report_12.10.2012_body_Picture_1.png, Forex Analysis: AUD/USD Classic Technical Report 12.10.2012

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for

To contact Ilya, e-mail Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, please CLICK HERE

New to FX? Watch this Video. For live market updates, visit the Real Time News Feed