(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)
11/16/2009 - AUD/USD - Price action to start the week on AUD/USD, a daily chart of which is shown, has just tentatively broke through to establish a new 15-month high for the pair, but only by a handful of pips thus far. This currency pair continues to operate within the context of a long-term uptrend extending from March. If the current bullishness continues and closes significantly above the resistance imposed by the last 15-month high (around 0.9370) established just last week, an uptrend continuation will have been confirmed. The key target to watch in this event would be in the 0.9800-0.9850 price zone, which represents both the all-time high for the pair as well as the 161.8% Fibonacci extension of the most recent bullish run. In the event that price respects current resistance, the noted uptrend support line extending from March lows should continue to provide dynamic support for the pair going forward.
James Chen, CMT
Chief Technical Strategist
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