Friday, 10 May 2013

AUD/USD hurtles lower from ten month old range, next trend line support below 0.99

Last night I wrote that we should expect AUD/USD to trade lower so long as 1.03 was not beaten. Overnight the market hurtled lower from the ten month old trading range, after kissing goodbye to the old up trend line, as illustrated on the daily chart.

Zooming out to the weekly chart shows possible trend line support just below 0.99. Expect the market to trend lower toward that level. The market remains within a one and a half year old triangle, and could break either way from it. Focus now is on the downside but the upside cannot be ruled out if 0.99ish holds in coming day and weeks.