AUDUSD – Key resistance is at 1.0475/1.0520
A larger corrective downtrend started from 1.1085 (July’11 high), appears to be still in force for AUDUSD which may be a large triangle consolidation in a range between 1.0860 and 0.9580 ( Alt- double zigzag corrective swing,
which allows for a retest of the Oct’11 swing low at 0.9390 on multi-month basis). A break below 0.9580/0.9390 deepens the correction toward 0.9145. A break above 1.0860 would expose the 1.1000/1.1085 resistance in a complex wave B.
The pair has reversed from 1.0150 with bullish divergences in daily oscillators. Key resistance is now at 1.0475/1.0520, which is critical for near term bears. A break above would favour retest of the 1.0600/1.0630
resistance in a multi-week triangle pattern. The 1.0290/1.0200 support looks to hold in the immediate term. A break below 1.0200/1.0150 would extend the downtrend toward the strong 1.0100/0.9970 support where medium bulls are likely to fight back.
