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AUDUSD : Is the Pair Still Bullish?

AUDUSD is surging in response to the upbeat Chinese manufacturing data. As China is the largest trading partner of Australia, any growth in economy bring gains to Australian Dollar. A report on China’s HSBC manufacturing Index released on Sunday showed that the index came in at 50.8 in June which is the first time the index has risen above the 50 level. Upbeat data eased some concerns about the economic downturn in the world’s second largest economy.On the other hand the demand for dollar remain low as Fed stated that the interest will continue to remain low for a long time.

On the 4 hour chart, the pair seems like trading within an uptrend channel. It will rise until it find support from the rising resistance trend line.

(AUDUSD : 4 Hour Chart)

However on the daily chart, there seems a rising support trend line which might prevent the pair from falling down below this rising trend line. Also currently the pair is testing the resistance .9435. The pair may continue to surge by breaking this resistance as 100 day SMA has just crossed the 200 day SMA giving a bullish signal. 

(AUDUSD : Daily Chart)