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AUD/USD - Emerging from Consolidation

Posted on October 23, 2008 at 13:16 in Analysis by James Chen

AUD/USD Daily Chart(Please click on the accompanying chart to enlarge. Chart is courtesy of FX Solutions.)

As of early Thursday morning in New York, price action on the AUD/USD daily chart, as shown, has just tentatively poked its head below the bottom border of a key inverted pennant/triangle pattern. This pair has been slower to break its consolidation than other pairs, most notably USD/JPY and GBP/USD, but it appears now to be attempting a significant bearish move. Any continued downward momentum on this break should meet initial support in the 0.6330 region, a strong breakdown of which would confirm a downtrend continuation in the pair.

UPDATE: Like other pairs as of early Friday morning in New York, AUD/USD has taken a massive dive, dropping well below the noted 0.6330 support level to confirm an almost unmistakable downtrend continuation. Further support resides in the 0.5870 region.

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