Monday, August 15, 2011

AUD/USD Pennant Formed - August 15, 2011

The exchange rate has reached the 1.0400 highs, as predicted, and has begun to sell-off from there. It is still too early to say whether a resumption of the down-trend has begun but it probably will soon if it has not already begun. 

The pennant still indicates the likelihood of a bearish continuation and the current rally is weak and suceptible to break down. A move lower could target 1.0310 initially and then perhaps down to 0.9960. The next upside resistance level is at 1.0502. 

Analysis prepared by:
Joaquin Monfort
Forex4you analyst