Will Aussie Dollar Run Continue?

09/29/2010 12:01 am EST

Focus: FOREX

James Chen

Chief Technical Strategist, FX Solutions

Price action on AUD/USD (a four-hour chart of which is shown) as of Tuesday (9/28/2010) has just established a new two-plus-year high and bumped up against key resistance in the 0.9650 price region after traversing a steep bullish trend channel extending back to the late-August lows.


Click to Enlarge

This bullish trend is just one leg of a longer-term uptrend extending back to the early-June low. In the event of a strong breakout above the 0.9650 resistance area, which would confirm a continuation of the current steep uptrend, the key upside resistance target resides around the very important 0.9850 price region, which represents the all-time high for the pair.

To the downside, a breakdown below the current steep uptrend channel could indicate the beginnings of a bearish correction in the longer-term uptrend, with an initial downside target in the 0.9465 support region.

By James Chen, chief technical strategist, FXSolutions.com

Related Articles on FOREX

Keyword Image
The Fabulous Shrinking Renminbi
09/27/2017 1:13 pm EST

As of August 2015, renminbi (RMB) in payments globally accounted for 2.8 percent of the total, the f...