FX.co ★ AUD/USD continuation Flag Pattern May 30, 2011

:: Daily ::

AUD/USD is showing long term upside movement

Early at the Daily chart , the pair formed the flag pattern which is a continuation pattern indicating continuation of the prior movement

Last Friday we witnessed the breakout of the flag channel which gives LONG signal

:: 4H ::

The breakout of the channel is clear on the 4H chart

MACD in directing upside confirming the bullish view of us

Now we have continuation pattern confirmed when the pair retests the backside of the channel successfully

If the backside of the channel [ level between 23% - 38% fibonatcci levels ] was successfuly tested

then we recommend opening long position on the pair with initial target at 1.0840 then 1.0975

It's important to mention that SL for Long positions on this currency pair should be below 1.0440