AUD/USD Candlesticks and Ichimoku Analysis

	Last Candlesticks pattern	Time of formation	Trend bias
Weekly	N/A	N/A	Up
Daily	Doji	28 Aug 2009	Up

Although the Australian dollar continued to trade with a firm undertone and test of resistance at 0.9331 would be seen, a break above there is needed to confirm medium term upmove from 2009 low of 0.6007 has resumed and bring retest of recent high at 0.9407. Looking ahead, above latter level would extend headway to 0.9500, then 0.9633 (61.8% projection of 0.7700-0.9407 measuring from 0.8578), however, reckon 0.9717 (100% projection of 0.6248 to 0.8265 measuring from 0.7700) would limit upside and price should falter below resistance at 0.9851.

On the downside, whilst pullback to 0.9050/60 cannot be ruled out, reckon the Kijun-Sen (now at 0.8987) would hold and bring another upmove to aforesaid upside targets. Only a weekly close below the Tenkan-Sen (now at 0.8929) would prolong consolidation and risk weakness to 0.8800 but price should stay well above support at 0.8578 and bring another strong rebound later.

Based on ActionForex.com Technical Outlook

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