AUD/USD Breaks Down the March Rising Trendline

by Admin

Awards 2013

AUD/USD 4H chart 10:14AM EST 3/27/2013

AUDUSD

Retreat: The AUD/USD has been bullish since finding support at 1.0114 on 3/1. Recently I noted that the current rally has the 2013-highs in sight, but the market is saying “not so fast.” The 4H chart shows the market retreating after failing to break above the 1.05 handle, and is now falling below a rising trendline that has held up the March bull trend. This neutralized the uptrend and is threatening at least a near-term bearish correction.

Retracement: In the correction scenario, the first target or expected support could be the 1.0335-1.0350 area, which includes the previous consolidation lows as well as the 38.2% retracement. There is a pivot around 1.0445-1.0450. A pullback above that could neutralize the near-term bearish correction outlook. Otherwise, a break below the 1.0410 pivot should add weight to the correction scenario.