The (AUDUSD) surged roughly 100 pips yesterday on the back of the FOMC and US Fed rate hike, halting the correction from early April.  Yesterday’s break above downchanel resistance (on the 4hr chart) dramatically increases odds for a break above descending wedge resistance (on the daily chart) by the weekend.  With yesterday’s rally occurring from just above the psychologically key 0.70 whole figure level, a higher May low versus the February low is likely regardless of the healthy profittaking that may kick in with Friday’s highly anticipated US Non-Farm Payrolls (NFP).  Monitor as usual for any signs of escalation or ceasefire in the Ukraine-Russia conflict.  The weekly, daily and 4hr RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains.  I am flat after profitably closing longs yesterday and am looking to re-enter long in the green zone (of the daily chart), targeting the red zone for Wednesday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).  Click here for analysis on EURUSD, WTI CRUDE

AUDUSD Weekly/Daily/4hr

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(FXA)