AUD/USD made a short-term intraday bullish reversal yesterday. Monitor the resistance implied by the recent high at 0.9484 (08 October 2013 high). Another resistance is at 0.9529. A support stands at 0.9388 (07 October 2013 low).
We favor a new phase of strength as the consolidation since June is supportive of a longer phase of AUD strength. A break of the support at 0.9224 would invalidate that scenario.
In the medium-term, the break above the strong resistance at 0.9345 confirms an improving medium-term technical structure. However, the long-term technical pattern remains negative thus far. Therefore, we expect the strong resistance at 0.9843 (21 May 2013 high, see also the 200 day moving average) to cap the medium-term upside potential.
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