Australian Dollar Finally Cooperates - Longs Look Good Here
Trade Implications – AUDUSD: The Australian Dollar’s break above critical technical resistance at $1.0496 suggests this is the range breakout we’ve been waiting for, and indeed we’ve seen our Momentum2 system hold a long from $1.0472.
The preceding weeks of choppy AUDUSD price action has been quite frustrating—we were stopped out of both long and short positions at losses on several occasions. Yet the combination of the price breakout and the massive sentiment swing gives us reason to expect a continuation in Aussie Dollar strength, and we remain bullish as long as price remains above resistance-turned-support at $1.0496.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.