FX.co ★ The AUD/USD candlestick analysis for 20/10/2010

On a 4-hour chart, the AUD/USD currency pair rolls back after it fell to the lower limit of the uptrend. At present, the viewpoint on the currency pair is bullish. If the resistance level of 1.00 is broken through, then the increase to 1.05 is expected.
Earlier on a 4-hour graph, the AUD/USD had formed the combination of candlesticks Morning Star, which is the signal for uprising movement.
This combination of candlestick formed near 0.8770, where the bulls started to increase their influence and a rollback after downside movement took place. The upward tendency is confirmed by the fact that Morning Star emerged near the lower boundary of the uptrend (daily chart). This combination of candlesticks opened an opportunity to take long positions.
It is worth to say that the stop orders should be set slightly below 0.9639, as the breakthrough of this mark will mean the breach of the uptrend.