AUD/USD Daily chart 1/28/2013 7:45AM EST
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Sharp slide: AUD/USD has been sliding sharply, lastly observed breaking a rising channel. It continues to slide as we see it break below 1.04 and a rising trendline in the daily chart. The next area of support is between 1.0345-1.0363. These are the lows in Dec. 2012. The daily chart does not look very bearish, so I would anticipate this support zone to give some demand to a falling AUD/USD. Whether there will be a bullish reversal is yet to be assessed.
A break below that December low opens up 1.03 and 200-day SMA before the 1.2845 support pivot. When you look at at the big picture, AUD/USD is sideways after a rally from early June to late July 2012. If it is to oscillate all the way down to the consolidation range support, it has the 1.0150-60 area in sight, an area of very key support.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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