AUD/USD - the potential has emerged for technical base forming. However, a further rally is still required to break key resistance, to activate a technical buy signal (It originally generated a technical sell signal at 0.9203 on 10/9/14) It is significant that the potential for AUD base forming has emerged at the same time as the potential has also emerged for buy signals to be generated on key base metal prices - copper and zinc. Nickel and aluminium are already rated as technical buys. There is a strong relationship between the directional movement in the AUD/USD versus base metal prices. Analysing the AUD/USD chart in isolation shows that it has the potential to base form, and if the additional base metal prices generate technical buy signals, would be a further positive for the AUD outlook.
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