currency pair AUD /USD over the past few months, quite confidently takes to new heights, but during yesterday's trading session entrenched above the psychologically important 0.85 mark, and currently is trading at 0.86.

We believe that in future the next few months, there is reason to expect continued upward movement and expect to reach highs of last year.

Intersection

simple moving averages with a sufficiently large time intervals of 50 and 200 occurred in May of this year. Fast Moving crossed the slow upward from the first 3 quarters of 2006, thereby giving the signal for the formation of at least medium-term uptrend quotations (Fig. 1). This pair of quotes is a month which is above the fast moving.

Fig. 1 - Day speaker pair AUD /USD since 2006 and exponential moving averages

 

Source: Reuters

considering other technical indicators for the pair AUD /USD can say that they also indicate a upward trend. Indicator ADX, submitted a day schedule in Fig. 2 shows the intersection of the line DX DX-line upwards, which confirms the upward trend, the very trend line in recent years, after its apparent extinction, indicates a gradual return to upward movement.

indicator slope of the linear regression, located just below the end of last month, crossed the zero point, thereby giving a buy signal.

Relative Strength Index RSI is out of overbought and oversold levels, which also prevents the development of the trend.

Fig. 2 - Technical indicators for the pair AUD /USD

 

Source: Reuters

Recommendations

Thus, in the perspective of the coming months, we recommend the play to raise a pair AUD /USD, because at this point we studied indicators of technical analysis.

target level of the pair, based on the progress made in the third quarter of 2008 highs, as shown before the start of the downward trend will be the mark of 0.96, whereas in case of a false alarm and the closure of several trading sessions in a row below the fast moving average subject to change signals from other indicators to the contrary, we recommend to place stop-loss at 0.79.

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