The AUD/USD soared on Thursday as investors reacted to surging metals prices, specifically gold and copper. The Forex pair was also supported by the widening of the spread between Australian Government Bonds and U.S. Government Bonds, helped by a drop in U.S. Treasury yields.
The main trend is up according to the daily swing chart and Thursday’s rally indicates the buying is getting stronger. The next major upside target is the October 13 main top at .7897.
The Forex pair is up 12 days since the main bottom at .7501 was formed on December 8. This puts the AUD/USD in the window of time for a potentially bearish closing price reversal top.
Volume continued to come in on the light side due to the upcoming bank holiday on Monday.
Early in the session, the AUD/USD found support on an uptrending Gann angle, moving at a rate of .002 from the .7501 bottom. This angle came in at .7761. The Forex pair accelerated to the upside when it crossed to the strong side of a long-term downtrending Gann angle at .7765. These two levels then became support.
If the upside momentum continues then look for the rally to extend into the next long-term downtrending Gann angle at .7831. Overtaking this angle could drive the AUD/USD into the next long-term downtrending Gann angle at .7864. This is the last potential resistance angle before the .7897 main top.
This article was originally posted on FX Empire
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