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Chart of the Day - 7/09/2010 – AUD/USD

(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.)

7/09/2010 – AUD/USD – Price action on AUD/USD, a 4-hour chart of which is shown, has reached and consolidated just under critical resistance around the key 0.8780 price region as of Friday (7/09/2010) morning. This currency pair has been strongly bullish for this entire week after bouncing up from a double-bottom low in the 0.8315 price region. After that double-bottom was established and confirmed on a breakout above the double-bottom peak, price has continued its bullish stance up to the current 0.8780 resistance juncture. In the event of a strong breakout above this resistance, an immediate further resistance target to the upside resides in the 0.8850 price region. A further upside target, in the event that 0.8850 is broken, resides around the key 0.9000 price region.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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