AUD/USD 4H Chart 9/14/2012 9:05AM EDT
The AUD/USD continued to rally after turning the 1.0440 area from resistance to support, although we saw the market do a shakeout and testing a rising September trendline here before extending the uptrend.
This rally was driven by Fed’s announcement of QE3, which devalues the US Dollar and boosts commodities, and commodity currencies like the Aussie.
The AUD/USD rallied sharply through the 9/13 and into the 9/14 session. As we get into 9/14 US trading, the pair has tagged the August-high of 1.0613, holding there for now as we see in the 4H chart.
Breakout Scenariot, 2012-high: It should be noted that the August high was in the support area of a consolidation during early 2012, when the market was forming a double top in February, breaking below it in March. If the market manages to push above the 1.0613 high, given some elbow space, it should expose the AUD/USD to the 2012-high which is at 1.0850.
AUD/USD Daily Chart 9/14/2012 9:10AM EDT