The Fed’s future path still seems more bullish than the European Central Bank. If so, the yiel...
Aussie Dollar Breaking Through Important Support
01/12/2011 2:01 am EST
Price action on AUD/USD (a daily chart of which is shown) as of yesterday had dropped to break down below a key parallel uptrend channel extending back to the June 2010 lows.
On the chart above, price on the upper pane, slow Stochastics on the lower 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 price drop follows on the heels of a significantly bearish trend that has been in place since the beginning of the New Year last week.
This bearish trend originated from the multi-decade high around 1.0250 hit on New Year’s Eve 2010.
Currently, further bearish momentum on the uptrend channel breakdown could presage a change in trend for AUD/USD, with a key near-term downside target in the 0.9540 support price region.
Further downside target levels on potentially continuing AUD/USD bearishness are shown on the above chart, and include prior horizontal support/resistance levels and Fibonacci extension levels.By James Chen, chief technical strategist, FXSolutions.com
Related Articles on FOREX
Trade idea: No guarantees here of course, but maybe it’s a small caution flag for dollar bulls...
As of August 2015, renminbi (RMB) in payments globally accounted for 2.8 percent of the total, the f...
Our favorite horse to ride here for a “correction” lower would be the euro. And we would...