AUDUSD – Near term downtrend could test the
1.0100/0.9970 support
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 multimonth 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 1.0625 and the downtrend may be a wave C. The pair is attempting to stabilise from 1.0150. The 1.0325/1.0475 resistance should cap strength now. A break below 1.0150 would extend the downtrend toward the strong 1.0100/0.9970 support where bulls are likely to fight back. A reversal above 1.0475/1.0520 however would refocus on 1.0625 ahead of 1.0800/1.0860.
Anantharajan .P, CMT (Technical Strategist, Precise Trader)
