It looks like the break of the double bottom yesterday turned out to be a fake! As you can see, the 4-hour candle that tried to piece through the neckline resistance and close above it was quickly brought down by the Aussie bears. With a long-wicked candle right on the resistance and stochastics pointing down, it looks like the pair will continue to sink towards the former lows. If this happens, watch out for a triple bottom, which is a very strong reversal chart pattern!
Now let's move on to my technical view on the Kiwi. It looks like the pair has been channeling lower. With price trading at the middle of the descending channel, the important level to watch is the 0.6600 handle. A candle close below this minor support will open the next psychological level at 0.6500, right at the bottom of the channel. If the pair fails to bust through 0.6600, a retest of the falling trend line is highly likely, especially with stochastics pointing up.
Lastly, lets end with an inspection of the AUDUSD daily chart. The pair is currently having a hard time closing above a major resistance level at 1.0750. With signs of bearish divergence - price registering higher highs and stochastics showing lower highs - could we be in for a reversal? If sellers decide to come in with force, look for price to dip to former support levels at 1.0300. On the other hand, if buying pressure remains strong and we see a daily candle close above the 1.0750 mark, we could see a test of former highs at 1.1100!
- Daily Chart Art - May 26, 2010 20:24 25 May 2010
- Daily Chart Art - June 11, 2010 20:17 10 June 2010
- Daily Chart Art - July 29, 2010 21:20 28 July 2010
- Daily Chart Art - April 14, 2010 20:14 13 April 2010
- Daily Chart Art - December 16, 2009 19:37 15 December 2009
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