Yesterday i mentioned that if the 5 day MA crossed back above the 15 i would start to get a little more excited about the AUD/USD and price action overnight has seen that occur. This is only the second time this has ocurred in 2009. With the 5 above the 15 it is suggested to start playing from the long side and forget about sub 0.6300 levels for now.
BUT, we still have the important 0.6550 level that we need to negotiate so the best course of action for now is to look to buy on dips back to 0.6430 and 0.6400 with a stop below 0.6350. I would also be looking to buy on the break of the much talked about 0.6550 level because the next level of resistance worth noting will be 0.6800, with the potential for a move back to 0.7500 as the daily chart indicates to me.
As a special treat today i have also included a weekly AUD/USD chart which to me indicates we have broken the channel that has been in place since July 2008.
