Chart of the Day - 10/14/2010 – AUD/USD

[James Chen]

10/14/2010 – AUD/USD – Price action on AUD/USD (a 4-hour chart of which is shown) as of Thursday (10/14/2010) broke out above 0.9900 resistance to reach a record high just shy of parity (1.0000) in early Thursday trading, before pulling back to re-test the point of breakout. This occurs within a strong and accelerated uptrend extending back to late August, that exists within a larger uptrend extending back to the June lows. An overall bullish bias continues to dominate this currency pair. In the event of a strong breakout above 1.0000 parity, an upside resistance target resides around the 1.0300 price region, which is a confluence of two different Fibonacci extension levels, a 138.2% and a 161.8%.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)