AUD/USD: bulls remain in control, eyeing 15th April/2016 highs

AUD/USD has rallied and continued with its northerly trajectory to highs of 0.7759 from lows of 27th May. 

AUD/USD continues within the uptrend given the fragile US dollar and risk on attitude in due to the lack of follow through from the FOMC while markets are nervous to price in a rate hike from the Fed for this coming September. Commodities are trending higher overall and we have seen iron ore and coal both advance recently 

 Analysts at Westpac explained that, "Having broken the mid-July high of 0.7676, we don't see an obvious barrier to a test of 0.78 in coming sessions. A note of caution comes from positioning – CME specs are only modestly long but AUD/USD has risen in 9 of the past 10 weeks so seems overdue to at least consolidate."

How volatile has AUD/USD been? 

On the hourly AUD/USD chart, ATR (14) is presently at 20 pips, while 2-Standard Deviation Volatility Bandwidth is shrinking and currently 64 pips. On a daily chart, 2-Standard Deviation Volatility Bandwidth is expanding at 262 pips. Over the past four weeks, 20 pips has been the average movement for the current session. Following the four week period average, today's most volatile hour was between 1:00-2:00 GMT which has an average movement of 28 pips. 

What price levels and patterns have to be considered? 

With spot trading at 0.7713, we can see next resistance ahead at 0.7727 (Daily Classic R2), 0.7757 (Yesterday's High), 0.7760 (Daily High), 0.7766 (Daily Classic R3) and 0.7768 (Weekly Classic R2). Support below can be found at 0.7709 (Hourly 20 EMA), 0.7703 (Daily Open), 0.7702 (Monthly High), 0.7702 (Weekly High) and 0.7700 (Daily Classic R1).