FXstreet.com (Barcelona) - Australian Dollar rose on Monday from 0.8340 low to 0.8460 high on early Asian session: the pair failed on its attempts to break above 0.8460/70 resistance area and declined on early european session to test 0.8400 support at the time of writing.
According to Greg Holden, techniclal analyst at ForexYard, the pair has formed a bearish cross and further decline could be ahead: It appears a bearish cross has recently formed on the 4-hour chart's Slow Stochastic, indicating that this pair's recent downward correction may still have some steam. Now would be a great time for forex traders to join this recent run and capture the remaining profits before the rising trend continues.
On the downside, below 0.8395/00, next support level could be located at 0.8340 (Aug 31 low) and then 0.8390. On the upside, initial resistance lies at 0.8460/80 (2009 high), and above here, 0.8500 and 0.8520 (sept 22 08 high).