I am looking at the AUDUSD 4 hour chart and we can see that the pair is trying to break out of the channel. If the bulls are successful in beating that down trend line, we will have two levels to aim at. The first target would be the 0.94 level and we have the second target at the 0.945 level.
On the down side, if the pair starts to trade back in the channel, we could see the bears retesting the 0.93 before proceeding to 0.92, which has seen quite a support since 26th March.
On the news front we have just gotten some China data that is showing some signs of improvement. China pumped up some positive economic data in the form of the CPI which grew 2.5% for May and this is up from 1.8% and is ahead of the estimates at 2.4% (And as you guys know that as when the real data beats estimates, it is always if not often good for the underlying asset that takes into account that particular data). This is apparently the fastest pace in a 4 month period and is consistent with the notion that China has been meting out easing measures to shore up its economy and to revive growth.
So if China data continues its uptick, we can expect the Aussie Dollar to remain strong and test its highs in the coming weeks.
To your trading victory!