June 6, 2008 00:54

Technical Analysis – AUD/USD What goes up…

Posted In: Free Forex Signals
By:

6-6-08

00:55 GMT – … must come down. Except in the Forex world ;). However, with AUD/USD approaching solid resistance and overbought hourlies we have a decent chart setup. In the long term I expect the AUD/USD to break the 1.9660 resistance and confirm the uptrend (until the situation in the US turns around or the Australian economy plummets) but in the short- to mid-term I expect the pair to drop back down to channel support. Trend resistance is currently at 0.9630 with intermediate resistance around .9615.

Trading Idea: Enter short on a bearish candlestick close to .9625 resistance with targets at .9585, .9545 and .9515. Stops should be above .9640. If resistance is clearly broken look for some consolidation and then a test of .9660.

UPDATE – 5:27a GMT 6-6-08 – pair is consolidating its gains underneath the .9615 support currently. No bearish sell signal yet, and not close enough to resistance for my taste.

UPDATE – 16:58 MT 6-6-08 – pair never got close to the .9625 resistance, though did start to fall this morning before bad US NFP data sent the dollar plummeting and our resistance line was broken with no bearish signal.

Result: 0 pips

Analysis: Good no trade, though this was a very solid chart setup.

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