(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.)
8/07/2009 € AUD/USD € Price action on AUD/USD, a daily chart of which is shown, has approached resistance around 0.8500 before correcting back down to a new short-term uptrend line extending from the mid-July 0.7700 low. The current bearish correction could potentially go on to breakdown below this trendline and reach towards further support in the 0.8260 support/resistance region. To the upside, a continuation of the current prevailing uptrend would be confirmed on a breakout above the 0.8470 high. In the event that price continues up above the noted 0.8500 support/resistance region, a significant further resistance target to the upside resides around the 0.8800 price region.
James Chen, CMT
Chief Technical Strategist
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