AUD/USD Trying to Break 1.04 Following Trendline Breakdown

by Admin

Awards 2013

AUD/USD 4H chart 3/28/2013 9:20AM EST

AUDUSD

Trendline breakdown: Looking the 4H chart, we see that the market is continuing lower following a breakdown of a rising trendline that was holding March price action bullish. The break neutralized the bullish outlook, and price action appears to be in a bearish correction as it tests the 1.04 handle at the start of the 3/28 US session. If price falls below 1.04, and the 4H RSI is dragged below 40, then we have further confirmation of the current bearish correction scenario.

Target/support: Below 1.04, there is room toward the 1.0335 support pivot – 1.0350 38.2% retracement area. We might anticipate at least some near-term support here, with upside risk toward the 1.04 handle to 1.0413 pivot.

As we get closer to the noted support area, remember that this is the middle of a larger range roughly between 1.0150 and 1.06. There might be a bearish trend with momentum in the near-term, but there is no directional bias in the larger degree.