Technical Trading Tips and Techniques by 
With the current interest rate differential between the Aussie and USD now at a sizeable 4.00%, the AUD/USD pair (a daily chart of which is shown) appears to be jumping on the dollar-weakening bandwagon. After having just broken out of a triangle consolidation support base, price has now gone on to break a key downtrend resistance line, as of Thursday morning in New York. If this break indeed turns out to be true, it hints at a potential trend reversal. The next major resistance to the upside resides around the 0.7250 region. A breakout above this level could eventually target strong further resistance in the 0.7700 region.
UPDATE: Thursday and Friday morning’s price action proved that the dollar-bearishness of the last couple of weeks was not to continue just yet. Like the EUR/USD, AUD/USD retraced rather dramatically, erasing some of the dramatic gains made in the last several days. There is still a good chance for the pair to rise again, but in the current thin liquidity, inexplicable volatility may dominate price action at least for the holiday season.