AUD/USD: Moving Higher
AUD/USD has broken the resistance at 0.9070 (see also the declining trendline), which confirms the recent short-term technical improvement. A move towards the resistance at 0.9233 is likely. Hourly support stands at 0.9087 (intraday low) and 0.9037 (intraday low).
In the longer term, the break of the strong support at 0.9388 (04/10/2011 low) opens the way for a further medium-term decline, whose potential downside risk lies near the key support at 0.8067 (28/05/2010 low). However, we keep in mind that if the key resistance at 0.9345 were to be broken, we would have to reassess our outlook.
We are raising our stop-loss to 0.9058 from 0.9004.