AUD/USD 1H Chart 8/9/2012 3:03PM EDT
The AUD/USD continued to rally through the 8/9 Asian session and poked through this week’s high at 1.0602, reaching 1.0613 before pulling back in the 8/9 European session. The breakout does expose the 2012 highs in the 1.0845-1.0850 area, but it has not been a very clear breakout so far. During 8/9 US trading, the pair is respecting a near-term rising trendline, which is a sign that bulls are keeping AUD/USD buoyed, while EUR/USD for example fell to new lows for the week.
Another bout of risk-on trading is still needed to fuel the AUD/USD toward the 2012 highs, but technically it appears the Aussie is very resilient and has a good chance to pick up steam.
Falling below 1.0560 should constitute as a failure to confirm the bullish breakout, and the market would still be seen in a flat correction, an expanded flat at that.