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Past performance is not a guarantee of future results. Please remember that technical analysis is only a tool for trading and even targeted analysis is no guarantee of profits. Forex trading carries a substantial risk of loss and only discretionary capital should be used in trading.

Forex Trading: Watching AUDUSD. Tested key resistance today. Now approaching support. What next?

Posted by Greg Michalowski on Thu, 08/14/2008 - 9:47am in

 

The AUDUSD tested key resistance today at the 0.8786 level but failed to break higher (high was 0.8790). The level corresponded with the 100 hour moving average (currently comes in at 0.8782). 

The pair is now trading at the 0.8737 level and moving toward trendline support at the 0.8713 level.  This level should attract some buying.

Like a lot of the markets today, the prices are respecting the support and resistance levels and consolidating.  When this happens, the ranges can be played until a breakout occurs.  The longer the consolidaiton the better chance for a bigger move when it finally does give way.