AUD/USD breaks through a descending price channel's ceiling - technical analysis - 23-12-2015

AUD/USD jumped higher in its short term trading, succeeding in breaking through the ceiling of the descending price channel that limited the pair's previous movements in the short term, along with the pair trespassing the simple moving average for the period 50, thereafter getting rid of its negative pressure and benefiting from its positive support, and opening the door for the pair to lock in further gains, especially as relative power indicators vent off their extremely overbought saturation, which comes in contradiction to the price's upward movement, which is in turn another good signal for the pair.

 

We therefore expect the pair to rise, targeting the crucial resistance of 0.7355, as a price target for its breakthrough from that price channel.