AUD/USD reaches new post-float highs

The Aussie has been a remarkably strong currency of late and has shown no signs of easing so far. AUD/USD has continued to push higher as U.S. monetary and fiscal policy has kept the greenback under pressure. As such, the fundamental picture for AUD/USD remains constructive and the trend is likely to remain intact. From a technical perspective, the pair looks as though it may be near exhaustion in the short term as hourly oscillators indicate the pair is overbought. The momentum remains higher as indicated by the hourly MACD. If you hold the view that the Aussie is going to continue to rally, a pullback could be viewed as a buying opportunity. Some key technical levels are the 1.0575-95 area which appears to be a horizontal pivot. This is where the prior highs were and is also where the 21-hour sma currently comes in to potentially support the pair if we see a dip towards this level. Additionally, the 23.6% Fibonacci retracement of the rally from the April lows to current highs is currently around 1.0590. Below this zone may see the next level of support around the 38.2% Fibonacci retracement and cluster of hourly sma’s around 1.0520-40. The 55, 100, and 200-hour sma’s are currently in this zone. A break below this level suggests a deeper correction and further downside potential.

Source: Forex.com

20.04.2011