(Please click on the accompanying chart to enlarge.)
As noted on Friday’s Chart of the Day (click here), AUD/USD had formed an inverted flag pattern that hinted at a downward continuation. A breakdown of the flag did indeed occur yesterday, and then followed through today to hit the noted support target of 0.8500 (surpassing it by about 7 pips) before retreating back up.
- James
James Chen is the Chief Technical Analyst at FX Solutions, a leading Forex broker. He is also a registered Commodity Trading Advisor (CTA) and a Chartered Market Technician (CMT) Level 3 candidate. At FX Solutions, Mr. Chen writes daily currency analysis, conducts forex trading seminars, and has authored numerous articles on currency trading and technical analysis for major financial publications. His upcoming book, Essentials of Foreign Exchange Trading (John Wiley & Sons), will be released in early 2009.
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