(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.)
3/20/2009 € AUD/USD € Like other dollar-based pairs in the past two days, price action on AUD/USD, a daily chart of which is shown, has experienced significant dollar-weakening. This move has manifested itself on AUD/USD as a tentative break of the sideways consolidation that has characterized this currency pair since mid-January. This consolidation break was initiated on the breakout above key resistance in the 0.6850 region. With price currently just around this level, further subsequent momentum on this break, with the expected retracements, could eventually target an important further resistance target in the 0.7265 region. But in the event that price retraces back down below the 0.6850 region, the current short-term uptrend line that has provided dynamic support for the last two weeks should continue to provide support for the pair, at least in the near-term.
James Chen, CMT
Chief Technical Strategist
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