AUD/USD ended 2013 with a record 10 consecutive weeks of declines but since Dec 18, there have been a series of higher lows, including the rebound today.
Climbs above 0.8950 continue to be rejected but a bounce in the Australian dollar is overdue and today’s rebound underscores the point. Analysts at Bloomberg highlight the wedge and 21-day moving average as a key pivot. If the wedge breaks to the upside along with a break of the 21-day moving average, look for a 200-pip relief rally.
AUD/USD daily chart. Source: Bloomberg