AUDUSD—ready to climb?

After a drop to .9166, the pair popped up to .9252 this morning after the hawkish tone of the central bank statement (and rate hike). In doing so, AUDUSD broke the daily downtrend line from the November high. In addition, it's forming a triangle on the short-term charts.

It has resistance here at .9252 which was the March 17 high. One is safest waiting for a pullback or buying a clear break. Something to note is that today's low was 2 pips lower, at .9166, then yesterday's low of .9168. This isn't robust behavior but an uptrend is an uptrend and a hawkish central bank is a hawkish central bank. Support is at the bottom of the triangle at .9231 and then at .9166, .9084, and .8988. Resistance is .9252, .9330 and .9406 (the November high).

Here's the one-hour chart:












© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.