AUD/USD is testing resistance
AUD/USD approached resistance line connecting April and May highs (we can trace this line back to October 2013 high) and reached $0.9377 today. On H4 we see an inverted hammer candle and some diversion in RSI – the bulls hesitate ahead of the obstacle. Still, the prospects for the downside seem limited: the daily Cloud is thick and will act as support and the MAs have lines up looking upwards.
Resistance is at $0.9377, $0.9400 and $0.9450. Support is at $0.9350, $0.9315 and $0.9275 ahead of the strong support at $0.9200.
Next important data release is Westpac Consumer Sentiment at 00:30 GMT.
Chart. H4 AUD/USD