Forex Trading Technical Analysis (2010/08/04) AUD/USD Tentatively Breaks Out to 3-Month High
(Please click on the forex chart thumbnail to enlarge)
8/04/2010 Forex Trading Technical Analysis (FXpath.com) – AUD/USD (a 4-hour chart of which is shown) as of Wednesday (8/04/2010) just tentatively made a slight breakout above key resistance in the 0.9150 price region, establishing a new 3-month high, before pulling back. This occurs after price consolidated just below that resistance level for the last couple of days. Currently, AUD/USD is entrenched within a strong uptrend represented by a clear uptrend support line extending from the early-July double bottom low. If price is able to re-establish itself above 0.9150 and continue its bullish momentum within the strong current uptrend, the pair could soon begin targeting a key upside resistance target around 0.9400, which represents the long-term high hit in November 2009.
(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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