FX.co ★ The candlestick analysis of AUD/USD for May 28, 2010

On a 4-hour chart AUD/USD had formed “Morning Star” candlestick earlier on the falling trend, being a bullish signal, which was confirmed thereafter.
This combination of candlesticks was formed after before that the currency pair had made a solid downward move to 0.8066, where the bears had not been able to fixate and the bulls had won, causing a retrace.
Moreover, the currency pair broke the resistance level of 0.8383. At the moment it is expected that the pair will manage to reach the Fibonacci correctional level of 61.8 in 0.8680-0.8690 area where there is also a resistance level.
Though, if AUD/USD breaks the support level of 0.8383 long positions should be closed as it will lead to the minimum of 0.8066.