After reaching a target on the long term chart AUD/USD has pulled back smartly, testing a pivotal Fibonacci support area. Bears will strengthen their ranks on a break of this.
- MONTHLY CHART: Note how clear resistance has been found at an equality target we had marked in in the FX Specialist Guide, the 2001/2008 upmove extended from the 2008 low. On this chart note the 23.6% pullback of the 2008/2011 upleg at 0.9880, which lies not far from the 0.9849 2008 high. This offers first key support here.
- DAILY CHART: The recent violation of the 1.0386 27-Jun low and channel base projection , followed by break below the level of the 1.0253 Dec-10 high, implied loss of upward momentum. The 38.2% 0.9930 pullback level of the upmove from May-10 low has provided initial support and we currently wait to see if s/term strength is temporary only. First resistance is offered by that 1,0386 low.
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