Wednesday May 26, 2010 - 21:45:11 GMT
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Fxtimes: Forex Technical Update: AUD/USD and GBP/JPY Looking at Reversal
Forex Technical Update
May 26, 2010
AUD/USD and GBP/JPY Looking at Reversal
- 4H and 1H: Yesteradyâ€™s anticipation of a decline was premature due to the bearish bias. However, the market managed to crawl back to the 0.8350 area which is the resistance level of the current consolidation zone. 0.8100 is the support.
- The 4H chart shows the AUD/USD testing and rejected from going above 0.8350. The 1H shows that there was a spike that attempted a break above 0.8350, but returned developing a weak candlestick formation.
- The 1H chart also shows that the market must break below a short-term rising support. This is a minimal requirement for confirmation, and may be all you need, because the underlying trend is bearish. To be specific, a break below 0.8250 should suggest a swing to 0.81, or a little lower like 0.8090.
- The RSI cannot hold above 60, a bearish sign.
- 4H and 1H: I am abandoning the outlook to 130.80. The pair is in consolidation, in the 1H time-frame, in the middle of the consolidation zone between 131-131.40 and 128.00 area. The market may very well test these highs, but the bigger move may be the reversal back to test support area near 128.00.
- There are some risk appetite, but it is not showing much as the focus appears to be on the euro slide this morning, perhaps dampening the risk appetite sentiment.
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes 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.
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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