(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
3/22/2010 – AUD/USD – Price action on AUD/USD, a daily chart of which is shown, has tentatively broken down below a key medium-term uptrend line extending from the early February low. This occurs after price failed to reach 0.9325 area resistance in its prior bullishness. The tentative trendline breakdown places the pair firmly within the current overall trading range consolidation that has been in place since at least the November highs. In the event of a continuation of the bearishness that resulted in the noted trendline breakdown, a key downside target within the current consolidation resides around the 0.8800 price region. To the upside, in the event of a reversal of the bearishness that prompted the trendline breakdown, the mentioned 0.9325 price area should continue to serve as near-term range resistance.
James Chen, CMT
Chief Technical Strategist
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