Aussie Awaits Trade Balance Figures After Steep Rally
The AUD/USD rallied from 0.8911 to the current levels at 0.9107 through Wednesday. This steep ascent was caused by the Australian Dollar’s strength over a very weak U.S. Dollar as U.S. equities rallied strongly throughout the trading day.
Pattern Alert Courtesy of Autochartist
The Triangle breakout from 0.9020 pushed the AUD/USD higher towards previous resistance at 0.9080 – which was quickly broken as the bulls continued to rally the pair through the “big figure” at 0.9100 where prices have now stalled. The 240-minute time frame currently has on overbought Stochastic (21 period) reading that could be signaling a sentiment shift as it appears the bulls have little momentum left. Price action could also be stalling in anticipation of the Trade Balance figures due out at 9:30pm EST.
The initial pattern break yielded an 80 pip follow-through and could now be exhausting at these levels. To confirm a reversal, prices will have to break back below 0.9100 and continue lower through the past resistance at 0.9080 which will now be support.
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