Forex Trading Technical Analysis (2010/07/26) AUD/USD Approaches 0.9000 Target
(Please click on the forex chart thumbnail to enlarge)
7/26/2010 Forex Trading Technical Analysis (FXpath.com) – AUD/USD (a 4-hour chart of which is shown) as of Monday (7/26/2010) morning has just closely approached its key bullish resistance target of 0.9000, the potential for which was noted in last week’s AUD/USD analysis. This reach towards resistance, which establishes a new 2+ month high, occurs within the context of an uptrend extending from the early July double-bottom low (in the 0.8315 price region), and after price made a critical breakout above the key 0.8850 triple-top resistance late last week. Currently, price action is at an important juncture around 0.9000. In the event of a strong breakout above 0.9000, a further key resistance target to the upside resides around the 0.9150 price region, a significant prior support/resistance region. If the 0.9000 area resistance is respected, downside support within the context of the current uptrend continues to reside around the noted 0.8850 support region.
UPDATE: AS OF MONDAY (7/26/2010) MID-SESSION IN NEW YORK, PRICE ACTION HAS TENTATIVELY BROKEN OUT ABOVE THE KEY 0.9000 RESISTANCE LEVEL THAT WAS NOTED ABOVE.
(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.)
James Chen, CTA, CMT (bio)
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