AUDUSD—weekly chart

I'm not sure the EW count adds anything to my analysis for Aussie so I've removed it from this chart. It's possible the pair is in a B wave that has been going on since the bottom in late 2008 but I can see the case for other counts. As is often true, the pair couldn't sustain its steep uptrend and has fallen off from that. Note, though, how many months it continued, reflecting in part, strong commodity prices. One could make an argument for a bull flag on the weekly chart. This would result in a huge upward move if it were true. The sideways action should resolve soon and it will be interesting to see the effect that the doji, caused by Friday's close on the daily chart, will have.

Support:

.8785
.8618
.8578

Resistance:

.8921
.8945/87
.9000



© 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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