AUD/USD candlestick analysis for March 18, 2011 2011-03-18
The AUD/USD currency pair made a strong rebound to the resistance level 0.9961. As mentioned before, stop loss should be placed slightly above this level, since its break will target the pair to 1.0070.
Earlier on a 4-hour graph the AUD/USD currency pair has formed a candlestick combination On Neck indicating downside movement, confirmed further.
This combination formed amid a decline after an attempt to break the resistance level 1.0200; afterwards the bears started to increase their influence. This candlestick combination provided a good opportunity to open short positions.
Break of the 0.9700 support level will target the pair to 0.9537.
It is worth mentioning that stop loss should be placed slightly above the resistance level 0.9961, since its break will allow the pair to reach 1.0070.
Performed by Vladimir Donin, Analytical expert
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