Chart of the Day
AUD/USD Daily Chart — November 2, 2009
By
James Chen
, Published:
11/02/2009
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)
11/02/2009 – AUD/USD – Price action beginning the new week on AUD/USD, a daily chart of which is shown, has retraced all the way down to a key uptrend support line extending from the March lows, before making a pronounced bounce up off the trendline, tentatively respecting the current prevailing uptrend. This bullish price action represents the fifth instance of this currency pair respecting the trendline. Continued bullishness off this bounce would be displayed on a strong breakout above the short-term downtrend resistance line extending from the 0.9325 14-month high. In the event of this breakout, the next major upside target resides around that 0.9325 high. And in the event of a further break above that high, the key upside resistance target to watch for would be the all-time high around 0.9850, which coincides with an important 161.8% Fibonacci extension (the low-to-high Fibonacci span being measured from the low on 10/2/2009 to the 14-month high on 10/21/2009).
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James Chen, CMT
Chief Technical Strategist,
FX Solutions
Chief Technical Strategist,
FX Solutions
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