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AUD/USD : Rising Wedge Breakout

Australian dollar has surged about 4% since the RBA dropped its easing bias in February saying that the most prudent course would likely be a period of stability in interest rates. Yesterday Reserve Bank of Australia governor Glenn Stevens crashed the hopes if investors that the central bank will cut interest rates further and AUDUSD jumped to December highs. 

On the hourly chart the pair was following a rising wedge which gives a bearish sign. Investors were basically waiting for the Non-Farm Payrolls report which came out to be stronger and the pair broke the support trend line of the rising wedge.The pair might find support at .9078 which is the 23.6 fib level. However from the stochastic oscillator it seems like the pair will continue the downtrend as the signal trend line is still above the average trend line on the oscillator. May be a good point to open a short position if it breaks this support as the pair will find the next support at .9045.Looking forward towards next week,we might see some changes in the pair as China will report it’s CPI on Weekend and National Australia Bank will release the Business Confidence Report on Monday.