Monday December 8, 2008 - 16:44:47 GMT
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Chart of the Day - 12/08/2008 - AUD/USD
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend line in green; downtrend line in red; horizontal support/resistance levels in yellow; chart pattern in magenta; 50-period simple moving average in light blue.)
12/08/2008 â€“ AUD/USD â€“ As noted on last Thursdayâ€™s Chart of the Day, price action on the AUD/USD daily chart, as shown, was wavering in the middle of a well-formed triangle pattern. As of Monday morning, price has risen once again to touch and retreat from the top of the triangle, establishing at least the fourth contact with this dynamic pattern resistance line. A full retreat from this line should eventually target the bottom border of the triangle once again, currently around the 0.6150 region. In this event, the 0.6330 region is an intermediate support zone. Within the context of the current sideways range consolidation, oscillators like the displayed Stochastics are approaching overbought, which gives some strength to the outlook of a potential impending bearish reversal at or near triangle resistance. Any strong breakout to the upside above the triangle, on the other hand, should target strong resistance in the 0.7000 region, which is not only a significant prior support/resistance level, but also a key psychological price level.
Chief Technical Strategist
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