Monday March 29, 2010 - 17:30:10 GMT
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FXTimes: Daily Technical Update AUD/USD Rallies after Completing Correction to 0.90
AUD/USD: Rallies After Completing Correction to 0.90
- 4H: The AUD/USD started to decline last week, but
was supported above 0.90. The weekly post mentioned that a break below
0.90 would be a significant bearish signal. The stochastic was also
showing a bearish cycle in place. It was noted that the next bullish
attempt may give a clue as to whether further correction will take
place. (Refer to Weekly Technical Update 3.26.2010).
- The rally is very strong after testing the 0.90 psychological
support. This was coincident with the SMA-200 and a swing projection to
complete a bullish Gartley. The strength of this rally should shelf the
reversal outlooks towards 0.8750, and a bullish outlook should be
- So far the 4H time-frame is showing a potential break above the
declining channel resistance, but there is still 3-hours left for that
bar to close at the time of this post, so the correction is not
technical complete. The strong momentum though suggests a break is
going to happen.
- Daily: The strength of the current rally would
suggest the completion of the correction, which was at the SMA-50 in
the daily chart, and is 61.8% retracement.
- The 0,9250 area is the first target, while the 0.9400 high is the
second. These are 61.8% projection, and 100% projection respectively of
the previous bullish swing.
- The stochastic is showing possible bullish continuation.
- The greenback was strong last couple of weeks. Since the Aussie has
been exceptionally strong across the board, it is a good candidate to
fade against greenback strength.
Commodity Trading Advisor
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believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
damage which may arise directly, indirectly or consequently from use of
or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is
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the buyer or seller in the transaction one should carefully evaluate
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not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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