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FX.co ★ The candlestick analysis of the AUD/USD (long term outlook)

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Forex Analysis:::2010-11-04T09:02:03

The candlestick analysis of the AUD/USD (long term outlook)

The AUD/USD pair continues to refresh the historical highs. As it was mentioned before, a breakout of the resistance level 1.00 targeted the pair at 1.05. Earlier on a week graph the AUD/USD formed the bullish combination of candlesticks Bullish Engulfing, which is a signal to uprising movement.
The upwards motion is supported by the fact that this combination of candlesticks emerged on the uptrend after the rebound from the support level of 0.8066 and Fibonacci correction level 38.2, where the bears did not fixate and the bulls started increasing their influence.
This combination of candlesticks shows that the currency pair was decreasing after the failed attempt to breakout the resistance level of 0.9394. However, having come closer to 0.8066, the pair reversed.
The fact that the AUD/USD has broken through the mark of 0.8855 confirms this point of view.
The long positions should be closed in case the support level of 0.9400 is breached, as it will lead to decline to 0.8465.

The candlestick analysis of the AUD/USD (long term outlook)

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