The AUD/USD is trading at levels we last saw in early 2009 and has drawn a pretty good line in the sand at the 0.6840/50 region and looks like testing 0.7000 at some stage before Monday is done. Although the technical studies on the daily are looking pretty overbought, i think we still have enough momentum to take us back to the 8 Jan 09 high around 0.7270. Stops on longs should now be kept below 0.6840.
Overall, i believe we have the 0.7500 level firmly in our sights and this is also where the 200 DMA currently comes in.
It is also worth pointing out that last week was the first time the AUD/USD has closed above its 100 DMA since late July 2008, which it has now done on 2 consecutive days with a 3rd a distinct possibility. An interesting fact to impress your friends with over lunch!
