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Daily Forex Technical Report − AUD/USD

Tue, Jan 27 2009, 08:08 GMT
by ActionForex.com Team

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AUD/USD's rebound from 0.6419 extends further to day and reaches as high as 0.6701 so far. Intraday bias remains on the upside and further rise could still be seen. Focus now turns to 0.6840 cluster resistance (50% retracement of 0.7267 to 0.6419 at 0.6843). As long as this resistance holds, fall from 0.7267 is still expected to extend further. Below 0.6543 will flip intraday bias back to the downside. Further break of 0.6419 will bring fall resumption to retest 0.6008 low. However, note that a break of 0.6840 resistance will argue that fall from 0.7267 has completed. More importantly, this will suggest that such fall is merely part of consolidation from 0.6008, which is still in progress. In other words, stronger rise could then be seen for another test of 0.7267 and above before completing the consolidation from 0.6008.

In the bigger picture, price actions from 0.6008 is treated as consolidation to the impulsive decline from 0.9849 only and has possibly completed at 0.7267 already. Sustained break of 0.6008 will indicate that the down trend from 0.9849 has resumed for another five wave medium term decline, targeting 0.4773 (01 low) next. Above 0.7267 will suggest that such consolidation is still in progress, possibly for another rise to 38.2% retracement of 0.9849 to 0.6008 at 0.7475 before completion.


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