The March 4th bullish hammer in AUD is a significant low not only because of the strong reversal at the 50% retrace level but also because it registered a break and subsequent rally back above key support. Since, prices rallied impulsively and are now breaking from a bull flag pattern suggesting further upside ahead. (c1) The key range levels dating back to August are 1.0337 & 1.0411 because they have marked both pivots and the heaviest traded levels. Within that range, the hourly chart offers resistance at 1.0373 (both a retracement zone and old lows/highs). That 1.0373 level could prove to be a head & shoulders bottom neckline. If Aussie can better that level, bull flag measurements project a continuation to between 1.0388 & 1.0503 (symmetry targets). (c2) Levels: Support – 1.0283, 1.0202, 1.0117 Resistance – 1.0337, 1.0373, 1.0388.
Nomura