AUDUSD bounces off support

AUDUSD 4HR Chart - Metatrader platform

The previous dip in the AUDUSD has shown now shown indications of a rise in price as the pair failed to break below support of 1.04115.

The pair had bounced off this level on the 1 hour chart, only to find resistance at the 1.05178 level on August 21, 2012. A retest of the support level had occurred earlier today where the pair again bounced to and achieved a clear break and close to the upside of the previous resistance level.

The pair now forms what appears to be a double bottom on the 1 hour chart. A clear move to the upside of the neckline would project a 106 pip move to retest the previous high created before the pair began its descent from the 1.0611 area of resistance.

Double Bottom chart pattern - Metatrader platform

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