FX.co ★ Candlestick analysis of AUD/USD (long-term outlook)

Last week, AUD/USD pulled back after the solid upward motion. Nevertheless, at the moment long positions opened earlier should be kept, as the uprising trend is going on. As it has been noted before, AUD/USD can archive the mark of 0.9391 in the nearest future. On a weekly chart, the currency pair has formed a bullish candlestick combination “Bullish Engulfing”, which is a signal for an ascendant movement.
The fact that this candlestick has developed at the rebound from the support level of 0.8080 and from 38.2 Fibonacci correctional level, speaks in favor of an increasing tendency.
This candlestick combination shows that the currency pair has been falling after the failed try to break out the resistance level of 0.9394. However, having come to 0.8066, it reversed.
The fact that AUD/USD has successfully broken through 0.8855 means that the current point of view is correct. Now, a growth to the resistance of 0.9391 should be expected.
On the other hand, long positions are better to close after a breach of the support level of 0.8312 because it will open the way to 0.8066 (the low of May 2010).