Will This AUD/USD Rally Last?

AUD/USD is at 8 months high. AUD/USD is in an uptrend since January 2014. The most important question that the analysts are asking is will this AUD/USD rally last.AUD/USD rose to 0.95051 this Tuesday when the Reserve Bank of Australia didn’t change the interest rates and sounded less dovish to the market than expected.

Will AUD reach parity with USD?  The currency has been on an upward trend since late January. It’s gained about 6.5 percent against the U.S. dollar so far this year, making it the best performing major currency after the New Zealand dollar. Its strong performance, driven by a rise in risk appetite and firm demand for Australian bonds, has led some currency analysts to believe that parity with the U.S. dollar could be achieved by year-end.

However there is a bearish divergence appearing on the daily timeframe. If there is a strong bearish daily candle today and this bearish divergence signal gets confirmed that can mean the end of the AUD/USD rally.

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