AUDUSD amid positive outlook - Technical Analysis - 29-01-2016
AUDUSD kept rising in the short term and intraday levels, after successfully breaching the neck line of a positive technical pattern that formed previously in the short term, the Inverse Head and Shoulders pattern, as shown in the attached chart, with the supportive help of the SMA50. The pair eventually breached the resistance of 0.7105, representing the ratio 50% of Fibonacci retracement levels for a descending wave in the medium term (from 0.7385 to 0.6826), along with an influx of positive signals from relative power indicators.
Therefore we expect more gains to come for the pair in the coming short-term trading, targeting the resistance of 0.7253 as price target for that forming pattern, which representing the ratio 76.4% of the same retracement levels mentioned earlier.
Trend
Bullish