(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.)

5/21/2009 € AUD/USD € Price action on AUD/USD, a daily chart of which is shown, has reached up to key resistance around 0.7800 before turning and retreating back down to the 0.7700 region. The 0.7800 level has been the major resistance target since the breakout above 0.7300 in early May. Now that this important target has been reached, price is now at a very significant technical juncture. A continuation of the uptrend that has been in place since the lows in early March would be confirmed on a strong break above 0.7800, in which case a significant upside target resides around the psychologically important 0.8000 level. Downside support within the context of the current uptrend resides around the 0.7450 region, which is the level of the last swing low within this uptrend.

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.