(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
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.