March 6, 2014 – AUD/USD (daily chart) has risen for a third time to key resistance around the 0.9080 level and has, in the process, formed a potential inverted head-and-shoulders pattern. The 0.9080 level represents major resistance, as it has halted the currency pair’s advance on two recent occasions – both in mid-January and mid-February. This level is also the 38% Fibonacci retracement of the last major bearish run – from October’s intermediate high at 0.9757 down to late January’s three-and-a-half-year low of 0.8659. The inverted head-and-shoulders pattern that has tentatively formed – with its left shoulder at mid-December’s low, head at late January’s noted long-term low, and right shoulder at early March’s low – also has its neckline at the noted 0.9080 resistance level. A potential reversal or interruption of the entrenched bearish trend could be in the making if there is a strong breakout and follow through above this level. Incidentally, if valid, this would be the third head-and-shoulders reversal pattern since June of 2013. In the event of a breakout above the neckline resistance at 0.9080, the key upside target would reside initially around the 0.9400 level. This would be contingent on a breach above the 200-day moving average. To the downside, if the pair fails at or near the current resistance, downside support once again resides around the 0.8850 level. James Chen, CMT Chief Technical Strategist City Index Group Forex trading involves a substantial risk of loss and is not suitable for all investors. This information is being provided only for general market commentary and does not constitute investment trading advice. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision. James Chen James Chen James Chen is Chief Technical Strategist for City Index Group. He is also a Chartered Market Technician. He is the author of the books: "Essentials of Foreign Exchange Trading" (John Wiley & Sons, 2009) and "Essentials of Technical Analysis for Financial Markets" (John Wiley & Sons, 2010). Mr. Chen writes currency analysis, leads forex trading seminars and has appeared in numerous major financial media outlets, including CNBC, Bloomberg TV, Forbes, Reuters, Dow Jones, and the Associated Press. View All Post By James Chen Forex News Today: Daily Trading News share Read Next Euro spiked following Draghi’s lack of action FxPro - Forex Broker 8 years March 6, 2014 - AUD/USD (daily chart) has risen for a third time to key resistance around the 0.9080 level and has, in the process, formed a potential inverted head-and-shoulders pattern. The 0.9080 level represents major resistance, as it has halted the currency pair's advance on two recent occasions - both in mid-January and mid-February. This level is also the 38% Fibonacci retracement of the last major bearish run - from October's intermediate high at 0.9757 down to late January's three-and-a-half-year low of 0.8659. The inverted head-and-shoulders pattern that has tentatively formed - with its left shoulder at mid-December's low,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.