AUD/USD Breaks Out Of Bullish Wedge
Matt Simpson | Apr 22, 2014 06:20AM ET
ASIA ROUNDUP:
- The Aussie benefited the most today following today's positive 'Leading Index' release, coming in at 0.3% and the 6th consecutive positive reading.
- AUD/JPY saw an intraday 8-day high and broke above a descending resistance line.
- AUD/NZD remains near the 11-week highs and within yesterday's daily range
- AUS200 Cash is set to close higher for the 4th consecutive session
- Nikkei 225 breaks below yesterday's Shooting Star Reversal candle, which respected the 61.8% retracement.
UP NEXT:
The markets are very quiet today on the news front, as Trader’s return from their 4-day weekend.
US Existing home sales has been declining for 6 months, each below expectations with a further decline expecting in today's release. While it is considered a leading indicator of the economy it doesn't take into consideration sectors such as the construction industry, which would be included in the 'new homes sales'. However, with not much news to go on it should at least breathe some life into some of the Majors.
Technical Analysis:
AUD/USD: Breaks out of bullish wedge
Today's bullish sentiment was driven by the positive Leading Index to indicate improving economic conditions for Australia. The intraday chart above shows how 0.9430 was a pivotal area of resistance which may now act as support to provide buying opportunities to trade in line with the bullish wedge pattern.
Scalpers may want to consider short positions as it retraces towards the potential 'buy zone' with a break below 0.9340 opening up the broken trendline as a target.
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If bullish opportunities present themselves above 0.9343 then next targets are 0.936 and 0.937.
USD/CHF: Potential bearish wedge
It is labelled 'potential' simply because it has not yet been confirmed. This leaves open the potential for further highs in the meantime.
The markets may be quiet in the lead-up to news from US later so scalpers may want to consider short-positions towards the daily pivot, at which point bullish setups present themselves then long swing trades could be considered to trade up to 0.8860.
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