AUD/USD Breaks down April Trendline; Support around 1.05

by Admin

Awards 2013

AUD/USD 4H chart 4/12/2013 8:35AM EDT

AUDUSD

Trendline breakdown: The 1H chart shows a short-term bullish swing neutralized as 4/12 price action fell below a rising trendline that has held price action bullish the last couple of weeks in April. The RSI has also broken below 40 to show loss of bullish momentum. However, price has yet to test some key support factors around 1.05.

1.05 support: Around the 1.05 handle, there are a couple of support pivots, 38.2% retracement and the 100-hour SMA. We can expect at least some near-term support here, especially because the prevailing trend in this time-frame was bullish. Below 1.0490, we have the 1.0460-65 area which contains the 200-hour SMA and 50% retracement as possible support.