Rejection of PM May’s Brexit deal is leading to a no-confidence vote, but perhaps a stronger m...
Substantial Breakout for AUD/USD
11/10/2009 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.)
Substantial dollar weakening this week has just approached the 14-month high for AUD/USD, a daily chart of which is shown. This occurs after price action broke out cleanly above a short-term downtrend resistance line extending from that high. AUD/USD, much like EUR/USD, continues to operate within the context of a long-term uptrend extending from March.
Also much like EUR/USD, if the 14-month high on AUD/USD (around 0.9325) is broken strongly to the upside, an uptrend continuation will have been confirmed. The key target to watch in this event would be in the 0.9800-0.9850 price region, which represents both the all-time high for the pair as well as the 161.8% Fibonacci extension of the most recent bullish run.
The noted long-term uptrend support line extending from March lows should continue to provide dynamic support for the pair going forward.
By James Chen, chief technical strategist, FXSolutions.com
Related Articles on FOREX
Divergence between the S&P 500 and AUD/JPY can be a sign that one (or both) of the markets is vu...
With a no vote baked into the market, there may be more upside risk to the British pound and euro in...
Bill Baruch looks at short-term fundamentals of Yen, Aussie & Canadian Dollars....