AUDUSD promises more gains - Technical Analysis - 04-02-2016
AUDUSD rose handily in the short term and intraday levels, with the pair getting affected by a recently-formed positive pattern in the short term, the Inverse Head and Shoulders pattern, as shown in the attached chart, with the overall dominance of the upward short-term trend, and the ongoing positive pressure from the SMA50. The pair then reached the resistance of 0.7171, which represents the ratio 61.8% of Fibonacci retracement levels for a descending wave in the medium term (from 0.7385 to 0.6826).
Therefore we reaffirm our positive outlook for the pair, with a chance of a slight tumble however on profit-taking and to vent off the apparent overbought saturation from relative power indicators. Generally though, the pair promises more gains, especially if the resistance of 0.7171 is breached, targeting thereafter the resistance of 0.7253, which represents the ratio 76.4% of the same retracement levels, and also a price target for the forming technical pattern.