Monday, January 31, 2011

AUD/USD | Technical Analysis | 31 January 2011

AUD/USD | Technical Analysis | 31 January 2011

This pair continues to consolidate in an ever tighter range. We are probably in the last wave of a triangle and it may be the last wave is a little triangle in itself, in which case we are either in A or C of that smaller pattern. In either case the consolidation is likely to near an end soon and afterwards there will probably be a breakout.

As I have said in previous pieces the breakout will probably be bearish given the: “signs of exhaustion in the longer term trend.” Although as always with triangles caution should be exercised; however, taking the width of the range as a guide one could possibly predict a fall to 0.9580 or support and resistance at 0.9655.

by Joaquin Monfort, Analytical expert , Forex4You © 2011

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