Bullish Flag | AUD\USD

Submitted by ChartSecret.com on Tue, 07/07/2009 - 21:53
in

A strong bullish reversal signs in the AUD\USD currency pair:

  1. Flag Pattern - A reversal chart pattern, which resembles a channel but is narrower and allows less room for movement for price.
  2. 23.6% Retracement - A retracement to the 23.6% Fibonacci level, after a strong and long-termed uptrend.
  3. Range Phase - The Retracement is occurring slowly and with Flat Moving Average, which implies that the downtrend is weak and price is ranging. Bollinger Bands are squeezing the price, preparing it for a potential breakout.