Weekly scope: AUD/USD and Gold breakthroughs

Weekly chart AUD/USD

Support resistance R:R projections on 240 minute charts for AUD/USD

Support and resistance levels show the same 3:1 risk-to-reward ratio favoring a bullish position throughout the various time frames, as shown on Forex AI's trading platform Risk/Reward feature, based on Support and Resistance. At present it has just pierced the first and second resistances which are barely two pips close to one another on 60 minute charts, (only 22 pips on 4-hour time frame) and keeps going on with strong momentum. We still can expect a first-touch rejection when reaching top level but given the strength it is developing, I would really wonder if that obstacle will really be able to stop its course.

Monthly chart - AUD/USD

Yesterday’s surge on Gold, (after Bank of Japan’s overnight call rates cut from 0.1.% interest to a range between zero and 0.1%) and the continued weakness of US banknotes, leave little room for doubts about this rush of Australian dollar towards parity. It has been slow to manifest though, as this seemed to me a logical continuation of a persistent and strong bullish trend, which seen at higher time scales and applying Elliot waves to this and last year’s price evolution, gives way to expect even much more beyond an equally valued AUD/USD. It could go up to monthly 161.8% Fibonacci extension at nearly 300 points above parity levels. Gold has been on a steady and consistent up-trend since last July, after a two-month ample consolidation. It has now breached 161.8% extension and might be heading towards next 261.8% Fibonacci step at 1440.