(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.)
8/24/2009 AUD/USD After approaching strong resistance right below 0.8500 a few times since the beginning of the month, price action on AUD/USD, a daily chart of which is shown, is once again approaching that resistance level. This occurs after price dipped down to an uptrend support line extending from early March lows. AUD/USD is currently still in a marked overall uptrend, and the high this month thus far (around 0.8475) represented almost an 11-month high for the pair. Any substantial breakout above this high would confirm an uptrend continuation. This would be represented by a significant breakout above the 0.8500 level. In this event, a key further upside target resides around the 0.8800 price region.
James Chen, CMT
Chief Technical Strategist
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