Forex Trading Technical Analysis (2010/08/26) AUD/JPY Forms Clear Triangle
(Please click on the forex chart thumbnail to enlarge)
8/26/2010 Forex Trading Technical Analysis (FXpath.com) – AUD/JPY (a daily chart of which is shown) as of Thursday (8/26/2010) has formed a large and clear triangle consolidation pattern bisected by a key support/resistance level at 76.00. This occurs after three weeks of general bearishness that dropped price down from the very top of the triangle to its current position near the very bottom of the triangle and under the noted 76.00 price level. In the event of a significant breakdown below the lower border of the triangle formation, an immediate downside support target resides in the 72.00 price region, which is just above the bottom point of the triangle. A further downside support target in the event of continued bearish momentum can be found around 70.50, followed by the 68.00 price region.
(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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