My tendency is to be a contrarian and look for possible trend changes but there is no sign of this AUD/USD trend losing any of its momentum. Many AUD traders like to use the 20- or 21-day MA as an indicator but have a look at the attached weekly chart and see how effective the 20-week MA has been. After finally breaking cleanly above the line at 66 cents, the pair rallied 27 big figures to 93 cents before consolidating. After a prolonged period of choppy consolidation, we are now back above a steadily rising 20-week MA and we have been since 88 cents. The last 4 interweek lows have been on or close to the line. The obvious risk-reward play here is to buy dips towards .9925 with a stop (or possible a stop-reverse) below 98 cents.
