AUD/USD Reaches Long-Term Resistance

04/13/2010 12:01 am EST

Focus: FOREX

James Chen

Chief Technical Strategist, FX Solutions

Price action on AUD/USD, a daily chart of which is shown, began the new trading week by hitting a high that closely approached key 0.9400 resistance level, before retreating.

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; chart patterns in white; 50-period simple moving average in light blue.)

This 0.9400 resistance level represents the long-term, 15-month high hit in mid-November. The current bullishness occurs within the context of a medium-term uptrend extending from the early-February low.

Further bullish momentum that subsequently breaks out strongly to the upside above the 0.9400 resistance region would represent a very significant price event that could potentially go on to target further upside resistance in the 0.9650 price region.

By James Chen, chief technical strategist,

  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on FOREX