The cross-pair AUD/EUR seems to be exhibiting some classic trading-range principles. The consolidation starts mid-June following climatic selling behavior that finds previous support from Apr 2004. The first part of the range from Jun to Oct is very volatile w/wide price swings and upthrusts and shakeouts. Then volatility contracts thru Oct/Nov near the middle of the range w/the one early Nov upthrust the only significant move; note the nice converged resistance there at the still declining 200d ma and previous range highs. Also during this period the 20d & 50d ma's flatten and converge in the middle of the range as price cycles around them, textbook low-volatility circumstances. From this 2 month consolidation w/in the consolidation volatlity returns in early Dec, first on a breakdown back to the bottom of the range, which becomes a shallow test of the early Oct low, then on the parabolic rally back to the very top of the range/resistance, breaking the now flat 200d ma. At this point this rally is looking like a Sign of Strength. H