After falling from a new high the Aussie dollar appears to have finished a correction to the intermediate trend line.
Looking to the daily chart of the AUD/USD, the intermediate trend line (1) has taken the pair from a June low to a new record high in early November. After reaching a new all-time high of 1.0181 (2) the pair has corrected to the intermediate trend line which coincides with the pair’s low of 0.9535 (3).
A short term downward sloping trend line (4) has been drawn off of the recent highs. This trend line was breached during today’s European trading session.
We can expect resistance to come in at 0.9950 (5) along with the all-time high of 1.1081 (2).
Should the upward trend fail to materialize, support is found at the double top of last November at 0.9400.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
