05.05.201111:18 Forex Analysis & Reviews: AUD/USD candlestick analysis for May 5, 2011

Long-term review

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In a 4-hour graph the AUD/USD is rolling back strongly after it could not break the resistance at 1.1000. However, the decline might be limited by the support level 1.0672.
As mentioned before, in case of a break of 1.1000 we should expect an upside movement to 1.1100.
Earlier on a 4-hour graph the AUD/USD formed a Three White Soldiers candlestick combination that indicates upside movement, confirmed further.
This combination formed amid a growth after an attempt to break the support level 0.9700; afterwards the bulls started to increase their influence. This candlestick combination provided a good opportunity to open long positions.
Besides, the AUD/USD broke the 61.8 Fibonacci correction level. Break of the 1.0500 resistance level targeted the pair to 1.0600.
As mentioned before, if the support level 1.0672 is broken, long positions should be closed as it will cause a decline to 1.0440.

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