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AUD/USD: Rally Continues After Brief Retracement

Published 11/30/2015, 12:34 PM
Updated 03/05/2019, 07:15 AM

The Aussie dollar is rallying against its U.S. counterpart again on Monday after undergoing a correction in the second half of last week.

The pair broke above the long-term descending channel a couple of weeks ago and while the move higher has been far from convincing since, it appears we could see another slow grind higher in the days ahead.

Daily AUD/USD

The bulls took control again around the 50 fib level – 18 November lows to 25 November highs – which suggests the sell-off towards the end of the week was just a retracement and there’s still appetite for more gains. What’s more, if the pair closes the day above 0.7227, we could have a bullish engulfing pattern which again points to further gains going forward.

4-Hour AUD/USD

The next test for the pair could now come at last week’s highs, around 0.7282, with a break of this potentially opening up a move towards what’s proven to be a key resistance zone over the last four months, between 0.7380-0.7440.

As you can see below, OANDA traders remain undecided on the pair and are unconvinced by the recent rally and breakout.

AUD/USD Long-Short Positions

There is a lot of open buy orders around last month’s highs – 0.738232 – which may suggest that if the level is broken, we could see a more convincing rally than we’ve seen so far. That said, we’re still some way from hitting that level as it stands.

AUD/USD Open Positions

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