Bullish Price Trend Continues in AUD/USD

03/18/2010 12:01 am EST

Focus: FOREX

James Chen

Chief Technical Strategist, FX Solutions

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(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

Bullish price action on AUD/USD, a daily chart of which is shown, continues to follow a well-defined uptrend support line extending from the early-February low.

In the process, price has just reached a new eight-week high. This strong medium-term uptrend places the key 0.9325-area resistance in clear and immediate focus.

In the event of continued bullish momentum, right above the 0.9325 price region resides further major resistance in the 0.9400 region, which represents the 15-month high hit in mid-November 2009.

In the opposite event that price corrects substantially and breaks the current uptrend support line significantly to the downside, a key longer-term support target resides in the 0.8800 price region.

By James Chen, chief technical strategist, FXSolutions.com

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