Sasha Singh
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AUDUSD : Extending Gains But Seems Limited

AUDUSD is advancing today after the upbeat private capital expenditure data which showed that the investment by Australian firms increased in the 2nd quarter. The official data showed that the investment increased by 1.1% beating the economist’s for a decline of .5%. The increase basically came from the higher spending on infrastructure and mining activity.

AUDUSD : 4 Hour Chart

On the 4 hour chart, the pair broke above the resistance trend line of the symmetrical triangle trend giving a bullish bias ahead of the data. After the data it extended the gains and now heading towards the key resistance at .9372. On the stochastic oscillator the %K line just crossed below the %D line signaling an upward continuation so this time the pair may break this resistance.

AUDUSD : Daily Chart

On the daily chart, the pair seems like following a falling channel trend and if it breaks above the resistance at .9372 it will again find resistance from the falling resistance trend line of the channel. Overall the long term trend on the trend seems downtrend to me and the pair might not able to hold gains above the resistance trend line of the channel.