By: Mike Kulej
The Australian Dollar has been one of the most dominant currencies, following the 2008 global financial panic. It suffered severe sell off during that event, but has been in a steady uptrend since. In fact, in case of the AUD/USD pair, it is reaching its pre-crush highs. Almost.
On this weekly chart of the AUD/USD, we can see that the price remains well above the major up trendline, as well as the newer, steeper trendline, which is drawn through the low from June. The bullish momentum became even stronger recently, with price accelerating and breaking above the important resistance of 0.9405. There is no other obstacle between the current price level and the critical high of 0.9850, established in July 2008. Barring an emergence of some unexpected, and important, fundamental news, chances are very high that the AUD/USD will reach that level soon.
Other technical tools support continuation of the bull market. The RSI indicator is moving in tandem with the price, and has not reached the overbought level yet. At the same time, the ADX indicator has turned up, indicating a trending market, and exceeded its readings during the previous price highs. From the technical point of view, this uptrend in the AUD/USD is healthy and likely to continue.
AUD/USD Still Advancing
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