Australian Dollar Technical Outlook

[B]Australian Dollar / US Dollar[/B]

The AUDUSD has broken to fresh highs and, in the process, met resistance at the confluence of trend channel highs and the 78.6 percent Fibonacci retracement of the 0.8520-0.6000 move at 0.7980. Though it is mostly unwise to sell into sell into such impressive strength, a failure at said resistance would suggest a noteworthy short-term top is likely. Former Fibonacci resistance at 07560 likewise coincides with trend channel lows, and any sell-offs could target said level. Of course, a break of 0.7980 could eye a full retracement of the 0.8520-0.6000 move (at 0.8520), and only a relatively minor swing-high at 0.8100 represents a tangible price ceiling.