Candlestick analysis of the AUD/USD for 08/10/2010

On 4-hour graph the AUD/USD has successfully broken through the resistance level of 0.9850 reaching the new historical maximum at 0.9917 moving down slightly afterwards. Nevertheless, the analysts of large banks recommend buying the Australian dollar in a downward trend.

Earlier on 4-hour graph the AUD/USD has formed the combination of Morning Star candlesticks that comes as an upside signal.  
This candlesticks combination has formed near 0.8770 where the “bulls” were increasing their influence and a rollback took place after the down-going motion. In favor of the uptrend comes the fact that Morning Star formed near the lower bound of the upside trend (daily graph) .
This combination of candlesticks gave a good opportunity for opening long positions. Worth pointing out that stop orders should be placed slightly lower than 0.9541, as this mark breakthrough will mean that the upside tendency is overcome.

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