AUDUSD—at resistance

This pair is loitering right under resistance. No doubt it wants to make a break of it but supply is meeting demand and there's little movement this morning. The resistance is significant—it's the.618 retracement of the move down from the January high and it's also a polarity zone (.9012/33/48). AUDUSD reached a high of .9027 this morning. There's also nearby support—the short-term uptrend line is at the same point, roughly, as the 34 EMA at .8952.

It won't stay in this small range forever but there are few clues as to which way it will break. On one hand, the movement on the shorter-term charts looks corrective. In addition, there's a small broadening pattern that may be forming on the shorter-term charts. An orthodox pattern, if formed, is deadly. On the other hand, a pair that loiters just under resistance for any period of time does seem to eventually clear that hurdle. We're just going to have to wait and see on this one. I still have a sell order in at .9055 but I'll be watching price closely between here and there.

Support:

.9005/12
.8951
.8900
.8860

Resistance:

.9033/48/65
.9116
.9325
.9406

Here’s a 15-minute chart:



© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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