AUD USD Needs to Close Over .8419 to Sustain Rally

The AUD USD made a new high for the year after the Reserve Bank ofAustralia left interest rates alone but hinted that a rate hike islikely should the economy continue to show signs of improvement.

Intraday Analysis

Australian Dollar

The AUD USD made a new high for the year after the Reserve Bank of Australia left interest rates alone but hinted that a rate hike is likely should the economy continue to show signs of improvement.

Long traders look nervous at current levels which could be a sign that this market is overbought. Intraday there was an attempt to break this market to the downside as U.S. equity markets weakened but buyers came in on the dip.  Nonetheless there is the possibility of a daily reversal down should equity markets weaken into the close.

Technical traders should be watching for a close below .8419 to signal the start of a possible 2 to 3 day break.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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