Outside day in AUD/USD but too soon for the bulls to fret

The Australian dollar is up nearly 10 cents in the past two months as commodity prices and risk sentiment improved. But today after touching a fresh 9-month high of 0.7836 the pair almost immediately reversed and sank to 0.7733. That could be a topping sign but first, let's look at the chart. The weekly chart shows how small the rebound really is. This pair has been absolutely hammered over the past three years. It's not even in the range of any Fibonacci levels and the 100-day moving average is up at 0.7945, near where the downtrend kicks in. Zooming in, the daily chart has been impressive, especially the turnaround after the gap ... READ MORE