AUD/USD Intraday Triangle Breakout

The AUD/USD is enjoying a surge of buying support improvements in the credit market are perceived to be increasing risk appetite.  From a technical standpoint this psychology can be measured by the breakout above the key 0.7100 level.  As the AUD/USD has been rallying the U.S. Dollar Index has sunk back below the 86.00 further helping the aussie rally.

The 30 minute and 60 minute AUD/USD charts have consolidated within Continuation Triangle pattern alerts.  Both are  time frames that are in sideways market cycles making the congestion pattern a perfect way to capitalize on a breakout or breakdown.  In this case, as prices are rally through the psychological level of 0.7100, the downtrend line resistance has been pierced as you can see on the 60 minute chart.

The 30 minute chart alert has already transitioned to a Complete Pattern alert and is in trade management mode.  The Forecast Region is waiting at between 0.7150 to 0.7200 - both major psychological levels.  The initial resistance at 0.7150 will be the first test for this morning’s breakout and will be the first profit target for many traders in on the early leg of the move.