Wednesday, May 27, 2009

USD/AUD long term trend

Australian dollar made a significant H&S pattern on its long term graph against the USD. However this pattern failed and prices fell below the neckline which is at 0.80 currently.

Previous support has now turned to resistance.

Monthly 25 Years Graph

The bull market in AUD was broken decisively in July last year. Since then AUD got cut into half against the USD. This rebound can be seen as a bear market rally which has retraced 50% of the complete fall.

Weekly 10 Years

A significant turn can occur at the current price range of 0.80 – 0.85.

Incidentally 0.85 is also the target prices by measured move analysis of short term double bottom formed in USDAUD on a daily graph. RSI is diverging and current market action is now looking topish. If prices reverse from these levels we should look to go short on AUD against the USD for target of previous low of 0.60 and further.

Daily 2 years

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