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Reverses Bearish Threat

AUDUSD TECHS
  • RES 4: 0.7393 High Nov 10
  • RES 3: 0.7371 High Nov 15
  • RES 2: 0.7341 Former channel base drawn from the Aug 20 low
  • RES 1: 0.7287 100-dma
  • PRICE: 0.7282 @ 17:38 GMT Jan 12
  • SUP 1: 0.7130 Low Jan 7
  • SUP 2: 0.7082 Low Dec 20 and a key support
  • SUP 3: 0.7060 76.4% retracement of the Dec 3 - 31 upleg
  • SUP 4: 0.6993 Low Dec 3 and key support

AUDUSD rallied well alongside equities on Wednesday, putting the pair through the congestion zone of resistance layered between 0.7272-78. Clearance through opens the 100-dma at 0.7287 - the near-term target. Wednesday’s rally reverses the short-term bearish threat and opens gains toward the former channel base drawn off the Aug 20 low - this crosses at 0.7341. A failure to top the 100-dma would see bears re-target the 50-day EMA of 0.7228.

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