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AUD/USD: pre breakout
AUD/USD has been experiencing an increasingly uncertain 2016, with price currently back at the same levels seen seven months ago. The symmetrical triangle evident in recent months portrays a fight between the bulls and the bears, which has yet to be resolved.
However, the knowledge the greenback has been a stellar performer over the recent months alludes to the fact the Aussie dollar is a currency pair which is increasingly strengthening after years of China-fuelled depreciation. Looking across some of the other AUD crosses, it is clear we could be set for a period of substantial strength in the currency.
AUD/USD is perhaps not the best example given it is trading against one of the strongest currencies around. However, this triangle has to break soon and with price testing the upper trendline resistance (five of 11 weeks) much more than the lower boundary (two of 11 weeks), there is reason to believe the pair will break higher.