width=398(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; chart patterns in white; 50-period simple moving average in light blue.)

1/14/2010 - AUD/USD - Price action on AUD/USD, a daily chart of which is shown, continues to display some robust bullishness on its sustained rebound off the late-December low. This rebound has broken out above several resistance levels, including a short-term downtrend resistance line extending from the 15-month high around 0.9400 that was hit in mid-November. Currently, price has once again revisited strong resistance in the 0.9325 price region, just short of the noted 0.9400 long-term high. If the current bullishness continues on to breakout above the current resistance and that 0.9400 high, price will have established a new 17-month high and could subsequently target further key resistance in the 0.9650 price region. To the downside, a breakdown below the most recent short-term uptrend support line extending from the late December low could target strong intermediate support in the 0.8950 price region.

James Chen, CMT
Chief Technical Strategist
FX Solutions

IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.