The bid to the USD means trouble for risk even as equities hold big gains from Asia and Europe follo...
AUD/USD Hitting Fresh 12-Month High
09/09/2009 12:01 am EST
Click to Enlarge
(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.)
Price action on AUD/USD has mirrored US dollar losses in other currency pairs to hit a fresh 12-month high near 0.8650. In the process, this pair has finally confirmed an uptrend continuation by breaking out above the prior 0.8500 region resistance.
This occurs after price clearly respected a key uptrend support line extending from a March low by bouncing up off the line. Within the context of the current confirmed uptrend, a major upside resistance level resides right around the 0.8800 price region.
Tentative downside support now resides in the 0.8500 region, which previously acted as resistance before the breakout. Further down, the noted uptrend support line should continue to provide significant uptrend support for the pair as long as the current trend remains intact.
By James Chen, chief technical strategist, FX Solutions
Related Articles on FOREX
Yen breaking a long-term $ downtrend is the story for many today. It’s at odds with other mixe...
Waiting for central bank medicine to work again seems to be the best hope to calm markets, else we m...
Nothing but details today with the market still fixed on the USD as the risk-on and off indicator fo...