AUD/USD: upside potential limited despite solid advance in equities, commodities The AUD/USD pair traded within a wide range this past week but closed it barely up at around 0.7330. The Aussie plunged to 0.7237 as PM Turnbull suffered a leadership contest, which ended with him stepping down and Scott Morrison becoming the new PM. |
AUD/NZD’s uptrend look to be kicking back in to gear.
The aussie has got off to a ripper this month as risk sentiment pervades the markets and commodities move upwards as well. It is the strongest major currency so far this month and today on the back of the best reading in GDP in seven quarters.
Technically, the pair made a long-term low below 1.05 in April. Since then, prices have moved higher and last month broke a major trendline from the October highs. We retested that trendline last week and prices have compressed over the last few days with two consecutive narrow range days and an ‘inside day’ yesterday.
The hourly chart shows a break of short-term resistance as bullish momentum looks to be returning. Place your stop below the recent swing low at 1.0825 and a limit order at this year’s highs at 1.1072.
