FX.co ★ The AUD/USD candlestick analysis for 21/10/2010

On a 4-hour graph, the AUD/USD currency pair rebounded from the lower limit of the uptrend. At present, the viewpoint on the currency pair remains bearish. If the resistance level of 1.00 is broken through, the upturn to 1.05 is expected.
Earlier on a 4-hour chart, the AUD/USD had formed the combination of candlesticks Morning Star, thus indicating the uprising movement.
This combination of candlesticks emerged near 0.8770, where the bulls started to increase influence and a rollback after the downward movement happened. The fact that Morning Star formed near the lower limit of the uptrend (daily chart) confirms the ascending movement. This combination of candlestick provided an opportunity to open long positions.
It is worth to mention that stop orders should be set slightly below 0.9630, as the breakthrough of this mark will denote that the uptrend is breached.