Forex Analysis : AUD/USD
The day chart looks promising, but beware the curse of the failed forex break, which could see a spike to 1.0200 then a subsequent pullback.
• If the chart plays through text book fashion this week, the USD will of course get hammered, but it seems too obvious to be fully trustable.
• As traders find to their peril, forex market have a far greater tendency to ‘trick’ the chartist than say stock charts.
• The Australian Dollar has a bullish channel on the hourly chart that may top out at or very near 1.0200, from where a reversal back to nearer 1.0070 is likely.
• On a slightly longer time frame, AUD/USD has 1.0200 to 1.0250 to deal with. A breakout here would be a good sign the risk trade is back in rude health and likely unstoppable for a few weeks yet.