(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.)
3/02/2009 – AUD/USD – Price action on the AUD/USD daily chart, as shown, has once again reached down to a key uptrend support line extending from the 5 ½ year low hit in October. This strong uptrend support line has had at least four touches since its inception, and price has currently just poked its head tentatively below the line as of Monday morning (3/02/2009). This dynamic support line also coincides with a key horizontal support/resistance level in the 0.6330 region. Any continued bearish momentum, breaking and closing significantly below both the uptrend support line and the 0.6330 level, could target ultimate further support at the recent 5 ½ year low (around the important 0.6000 region). To the upside, dynamic resistance should continue to reside around the short-term downtrend resistance line, which is currently in the 0.6550 region.
James Chen, CMT
Chief Technical Strategist
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