AUDUSD is the strongest pair today
The strongest currency pair (of the major pairs) is the AUDUSD. The pair is up 1.44% on the day and in the process, the price is moving outside of a resistance ceiling.
In the post on Friday, I outlined how the price had surged back into a range that confined the pair for most of the period from mid February to March 6 (US employment day).
Today, there was up and down volatility, but the price was able to stay above the support area at the 0.7738 – 55 level (lower yellow area in the chart above). Since then, the price has pushed higher. and in the last few hours has been able to extend above the FOMC high from last week. It has also been able to get above the topside extreme at the 0.7845-57 area.
If the price can now stay above this area (close risk), there is scope for a further move higher, with the 0.7900 and 0.7912 highs as the next targets.
Looking at the daily chart, the up and down volatility on Wednesday, Thursday and Friday saw the price move above and below a key downward sloping trend line. Today we are seeing a further move away from that line (more bullish). The advancement, coupled with the break on the hourly chart above, is increasingly giving the AUDUSD a more bullish bias. That move should explore higher corrective levels - as long as the support at the 0.7738-55 holds. On the daily chart below, if the Feb high at 0.7912 can be broken, there is not a lot of resistance until the 0.8025 area followed by the 38.2% retracement at 0.8075 and the downward sloping 100 day MA at 0.8113 (blue line in the chart below).
Technically, the pair is looking more bullish.
