Tuesday, September 27, 2011

AUD/USD Bounce Extending - September 27, 2011

The exchange rate is oscillating within a narrow band with a bullish bias as it attmepts to break higher. At the range highs lies the R1 daily pivot at the lows is support and resistance at 0.9850. There is further resistance from the point and figure charts at 0.9850 and 0.9890. 

Meanwhile the daily charts are showing a possible falling 3-methods Japanese candlestick pattern, although it is not yet complete. The sideways consolidation currently unfolding today looks possibly like a continuation pattern rather than a reversal and it will probably break higher with a target at the 1.0000 level or the fibonacci 50% retracement level at 1.0010.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst