Australian Dollar: End-of-month overview

After a long and steady uptrend, the Aussie seems now due for a significant retrace. Yesterday’s tight consolidation gave way to a further push up above psychological level 0.9700, which we were targeting as an intermediate step up to parity in our past forex technical analysis. On 4-hour charts, we can see it forming an ascending wedge and having already pierced its lower trend line on the previous candle; AUDUSD has just breached the 25% level and keeps trading below, thus we can assume that it will probably push down to test 0.9667 at next Fibonacci level. We have a strong support area between 0.9650 and 0.9630, which would be representing the 50/61.8% retracements from the last swing high.

Medium-term, we would be targeting 100%, 138.2% and 161.8% extensions, favoring conservatively a pullback to 0.9500 round number.