AUDUSD continues to extend the strong bull trend from latter February, with a defence of trend line support in early March and extension above Q4 2015 highs to maintain a bullish tone for the Australian Dollar vs. the US Dollar into March.
Furthermore, the Canadian Dollar has also signalled a more bullish tone with recent USDCAD losses through intermediate term supports setting a bear trend for latter Q1.
A strong rally Wednesday through notable .7496/99 resistance barriers, building on the solid Tuesday dip and bounce from ahead of .7388 support (from .7406), to once more aim higher Thursday.
Short/ Intermediate-term Outlook – Upside Risks: The break above .7243 set a bull theme.
- We see a positive tone with the bullish threat to .7738.
- Above here targets .7849 and .8000.
What Changes This? Below .7106 signals a neutral tone, only shifting negative below .6971.
- We see an upside bias through .7545/50 for .7588; break here aims towards .7653.
- But below .7463 aims for .7409/06 and .7388, which we would look to try to hold; break targets .7338/18.
Daily AUDUSD Chart
The Tuesday rebound effort rejected, with a failure back from ahead of 1.3471 and 1.3500 resistance (from 1.3446) to push to a new cycle low and renew immediate downside risks for Thursday.
Short/ Intermediate-term Outlook – Downside Risks: A bearish shift in the short/ intermediate-term outlook below 1.3360.
- We see a negative tone with the bearish threat to 1.3038 and 1.3000.
- Below here targets 1.2828.
What Changes This? Above 1.4017 signals a neutral tone, only shifting positive above 1.4236.
- We see a downside bias for 1.3221; break here aims for 1.3157, 1.3105 and maybe more important targets at 1.3038 an 1.3000.
- But above 1.3350 opens risk up to 1.3446, which we would look to cap.
Daily USDCAD Chart