FX.co ★ AUD/USD candlestick analysis for January 4, 2011

The AUD/USD is rolling back after reaching a new all-time high. Nevertheless, the viewpoint on this pair is still bullish due to the continuing uptrend.
Earlier on a daily chart the AUD/USD has formed the combination of candlesticks Bullish Engulfing which indicates the uprising movement, confirmed further.
This combination of candlesticks developed near the support level of 0.9537, where the bulls started to increase their influence and a rebound after a downside movement took place. This combination of candlesticks provided a good opportunity to open long positions.
A breakthrough of the resistance level of 0.9710 means that this point of view is correct.
However, in case the reversal takes place and the AUD/USD breaks through the support level of 0.9825, then long positions should be closed, as it will lead to the further decline to 0.9537.