The AUD/USD pair rose from the 1.04 support level as the buyers stepped in just in time on Friday. The 1.04 level was the scene of a breakout from the large ascending triangle that gave us this last move up in the market. The triangle called for a rise to the 1.12 level, and we still think this is very possible going forward. This will be especially true if the Chinese start pump priming their economy as well. With this being said, a break of the Friday highs is a good buy signal at this point. Add to that the fact that the 200 day EMA acted as support, and the long term trend looks set to continue.
Written by FX Empire