Forex Traders Report AUD/USD
The Australian Dollar (AUD) has shown bullish price action against the US Dollar (USD) for the best part of 2014. Since reaching a low of $0.8660 in late January the AUD has been in a steady up-trend with prices currently hovering around $0.9400 for an increase of just over 9% in this time.
Over the past three months the price has been trading in a range between a support low of $0.9200 and a resistance high of $0.9400. This trading range has been highlighted on the price chart below as the rectangled area. The bull rally from February to April has stalled with bulls and bears currently trying to establish control. If the bulls are to win this battle then the price needs to breakout above the resistance high of $0.9400. A breakout above this level should see further buyers pour into the market and push prices higher towards the next resistance level of $0.9600.
If prices fall back towards the support level of $0.9200 and break below this price then the bears will have established control and this could result in prices falling back towards the next support level of $0.9100.
At this point I am neutral the AUD:USD and will wait to see which side of the congestion pattern prices break through.