Tuesday October 7, 2008 - 17:00:12 GMT
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Chart of the Day - 10/07/2008 - AUD/USD
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; horizontal support/resistance levels in yellow; Fibonacci Retracements in grey; 50-period simple moving average in light blue.)
10/07/2008 â€“ AUD/USD â€“ After having plunged over 700 pips within a single 24-hour period, price action on the AUD/USD daily chart, as shown, has currently begun consolidating within a limited range, as of Tuesday mid-session in New York. The plunge that occurred yesterday broke swiftly below several support/resistance levels and finally came to a halt precisely on the 0.7000 figure, a key psychological level that also represents historical support/resistance. Oscillators like the displayed Stochastics are showing momentum as severely oversold and starting to point back up, suggesting a possible exhaustion in the bearish run. Currently, price is stuck in between two key support/resistance levels â€“ the aforementioned 0.7000 level to the downside and the 0.7400 level to the upside, both denoted on the chart by yellow horizontal lines. This span can be range traded near extremes if the consolidation continues, or monitored for any potential breakout situations.
Chief Technical Analyst
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