AUD/USD - Conflicting Signals In Consolidation

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AUD/USD - Conflicting Signals In Consolidation

By James Chen on April 1, 2009 | More Posts By James Chen | Author's Website

AUD/USD, as shown on the accompanying daily chart, has consolidated in a flag formation after showing signs of some significant bearishness earlier on in the week. After breaking down below the 0.6850 support/resistance level on Monday, price subsequently bounced right back up and into the current flag pattern consolidation. While this flag hints at an upside continuation break, oscillators are showing signs of a bullish exhaustion, as price is moving back down from overbought territory.

In the event of a strong upside break above the top flag border and the key 0.7100 level, price action should target further resistance around the 0.7265 high.

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