(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.)
12/15/2009 - AUD/USD - Price action on AUD/USD, a daily chart of which is shown, has formed a triangle consolidation pattern after having broken down below a longstanding uptrend line extending from March lows. After this trendline breakdown, price consolidated sideways and formed this triangle, failing to follow-through to the downside for the time being. This occurs after price fell from a 15-month high hit in mid-November. A strong breakdown of this triangle should lend strength to a potential bearish trend reversal of the previously-prevailing uptrend. In this event, the 0.8800 price region should serve as an initial downside support target.
James Chen, CMT
Chief Technical Strategist
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