EUR-AUD consolidation whether the market is overbought oct 22 2012

forex trading outlook today- EUR-AUD consolidation whether the market is overbought oct 22 2012 :  The EUR/AUD is in a period of triangular consolidation as investors consider whether the market is overbought after advancing more than 8% from the 1.1600 base set in late July.

Trend line resistance comes in today at 1.2685 (Oct 8/Oct 17 peaks), now immediate resistance, and a break above there may target offers at 1.2730 (Oct 17 high) then 1.2770 (May 17 low).

To the downside, trend line support at 1.2590 (Oct 11/Oct 19 troughs) is the level to overcome before a test of bids at 1.2550 (Sep 18 high), 1.2505 (Oct 11 low) and 1.2457 (Sep 26 high). If this price pattern breaks out in the direction of the previous trend, the 1.2900 figure is a key level to watch (trendline resistance drawn from the Aug 7, 2011 peak to that of Oct 2, 2011). EUR/AUD exchanges 1.2635.

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