AUDUSD Technical Analysis Update – Ascending Triangle At Parity
- The AUD/USD currency pair is currently consolidating gains around the parity level. Price has bounced lower from this area on three recent occasions and each time a higher low has formed thus creating an ascending triangle.
- Parity on AUDUSD is found when a single Australian Dollar buys its US counterpart.
- The Aussie dollar is currently up around .67% on the day versus the greenback. Rumours have circulated that central banks could be preparing for co-ordinated action, should it be required, following the Greek elections; this has seen the US dollar trade lower across the board.
- This kind of technical level, with multiple bounces at a clearly defined area, will most likely see considerable order flow building. Options barriers and other speculative flows can also play a part around these major psychological round numbers.
- A sustained break above the area may see short term volatility and a potential bullish breakout. A failure to sustain a new high could likewise see weak longs squeezed out of positions and a strong subsequent reversal.
- The higher low scenario is hinting that a breakout to the upside could be on the cards. Price action should however be monitored carefully.