The aussie has broken above the down-sloping trend-line from the February highs and continued to rally higher. It will probably reach the top of the rising channel it is currently in at 1.0400 before slowing. If it breaks out of that than the next target is at wave equality at 1.0550 – and a break above 1.0600 would be very bullish as it would disqualify the head and shoulders pattern at the highs. If the current rally fails however and rolls over then it would probably target parity to the downside.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst