Forex Trading Technical Analysis (2010/07/28) AUD/USD Retraces Within Uptrend
(Please click on the forex chart thumbnail to enlarge)
7/28/2010 Forex Trading Technical Analysis (FXpath.com) – AUD/USD (a 4-hour chart of which is shown), has retraced back down to a key uptrend support line extending from the 0.8315 double-bottom low established in early July. This bearish retracement occurs within the context of this month’s steep uptrend that hit a 2+ month high of 0.9067 just yesterday before beginning the current correction. If the current uptrend continues to be respected with a bounce off (or near) the trendline, the 0.9000 level would continue to be the upside breakout level to watch in order to gauge further potential bullishness on this uptrend. To the downside, a significant drop below key support in the 0.8850 price region could presage a potential reversal/change in the currently prevailing uptrend.
(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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I’ll enter short at 0,8900