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AUD/USD: Upside Target Emerging On Weekly Chart

ByThe Pattern, Price & Time Report
AuthorJames Hyerczyk
Published 06/13/2012, 06:01 AM
Updated 05/14/2017, 06:45 AM
AUD/USD
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A possible upside target is emerging in the Australian dollar/U.S. dollar as the weekly chart is indicating that despite all the bad economic news, the market wants to move higher. The move has been slow in developing, however, as traders remain cautious ahead of the Greek elections on June 17.
 
Since reaching a bottom at .9564 on June 1, the Aussie has moved steadily higher, getting its greatest boost on June 7 from an interest rate cut by China. Since then the market has been hovering near parity. Some of the hesitation near this level is being caused by worries about Spain and Greece, but speculation that the U.S. Federal Reserve may take additional measures to stimulate the world’s largest economy is helping to underpin this AUD/USD currency pair.
Weekly-AUD-USD

Pressure on U.S. interest rates should drive up the higher yielding Aussie dollar. In addition, increased demand for risky assets should also help the Aussie grind higher. Some traders believe that parity was the objective of this latest rally, but the Australian Dollar could see even higher prices if the ECB helps out the ailing Euro Zone nations as expected and the Fed follows through with economic stimulus.
 
Technically, the weekly chart indicates the AUD/USD is set up for a 50% retracement of the break from 1.0856 to .9580. This first target is 1.0218. Downtrending Gann angle resistance is at 1.2056 this week, but drops down to 1.0216 the week-ending June 22. This makes 1.0216 to 1.0218 a key resistance cluster and upside target next week.

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