Forex Trading Technical Analysis (2011/03/10) AUD/USD Tentative Triangle Breakdown
(Please click on the forex chart thumbnail to enlarge)
3/10/2011 Forex Trading Technical Analysis (FXpath.com) – AUD/USD (a daily chart of which is shown) as of Wednesday (3/10/2011) has tentatively broken down below a key triangle consolidation pattern that extends back to the 1.0250 area long-term high that was hit at the very end of 2010. This triangle pattern has clearly defined the consolidation that has been in place since the beginning of the year, and the bottom border of this triangle is especially well-defined. Today’s tentative breach of the triangle’s bottom border places price near the parity (1.0000) support level. A strong further breakdown below parity could potentially go on to target further downside support around the 0.9800 price region, which represents both the bottom point of the triangle as well as the 61.8% Fibonacci retracement of the last major bullish trend run.
(Forex chart key: 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; Fibonacci levels in grey and/or light blue.)
James Chen, CTA, CMT (bio)
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