Aussie had a higher high and higher low yesterday but is still within sideways action largely around the parity level. Since January 31 there have been seven lows below parity, most above 99.60. There has only been two closes below parity in that same period of time, both within seven pips of parity. As to the upside, the high for February has been 1.0200 back on the 4th and while it has come close (yesterday's high was 1.0079) so far no cigar. The bulls need to first sustain a close above 1.0200. On the downside, .9950/16 is the line in the sand.
If the close over 1.0200/57 happens, the longer-term probability is for the pair to break above the daily triangle. It make also be possible for the pair to approach the top of the upward sloping rectangle. However, before that happens, sideways activity could continue another several days. One thing to keep an eye on is RSI. On the daily chart, it's nudging below the uptrend line. Similar action on price makes this a concern.
Here's the daily chart:
© Dianne Fecteau, 2011. 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.
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