(Please click on the accompanying chart to enlarge.)
As shown on the accompanying AUD/USD 4-hour chart, price has just bounced down off of a significant downtrend resistance line that has been in place since the recent bearish run began in late July. And as of Friday noon in New York, price has broken down below a short-term support line, hinting at a further extension of the dollar rally. Immediate support to the downside currently resides around the 1.8500 region, which, if broken, would potentially give strong indications of a continuation in the bearish run for this pair.
- 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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Just when I thought the GBP/JPY had fallen all it could fall without hitting the ground, it burrows its way further. What is going on with this pair? Do you mind taking a quick look?
Thanks!
GB
Hi GB!
Thanks for your question! Yes, the fall on this pair has been remarkable. I will put up a post on it soon. Thanks, GB!
- James