AUDUSD—Bouncing

On the daily chart AUDUSD formed a nice hammer with its dip to .8770 yesterday. This was near its short-term uptrend line from June which today comes in at .8763. .8781 was also the .382 retracement level of the move up from .8067 on May 25 to the Aug. 6 high at .9222.

I bought at .8836 after a nice solid close above the low on the three-hour chart with the positive divergence I wrote about yesterday. The pair touched a high earlier today of .8893 where it ran into price resistance. The 10-day SMA is at .8925; the 200 is at .8940. Those may well serve as resistance. If they don't, .9000, .9050 and .9080 are the next resistance levels. Should a move down begin again, the pair must break below .8740. Below that is .8715 and .8655/40 (July 19 low and 50% of June 7 to Aug. 6 rise).

Here's the 3-hour 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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