AUDUSD's bounce extended to 0.8992 level

Franco Shao from ForexCycle.com at 12/30/09

 

AUDUSD’s bounce from 0.8734 extended further to as high as 0.8992 level. Support is now located at the rising trend line on 4-hour chart. As long as the trend line support holds, the bounce is expected to continue and next target would be at 90.50 area. However, a clear break below the trend line will indicate that a short term cycle top has been formed and the rise from 0.8734 has completed, then another fall towards 0.8734 previous low is expected to follow.