Forex Technical Update
AUD/USD 1H Chart 12/21/2012 10:05AM EST
Bearish: The AUD/USD remains bearish since breaking below 1.05 and staying under it. The 1H chart shows the RSI tagging 30 and holding below 60, reflecting development of bearish momentum. Price action is also accelerating downwards. The moving averages in the 1H chart are in bearish alignment. However, as we get near the 1.04 handle, the AUD/USD meets a rising channel support.
Channel support: The daily chart shows the AUDUSD in a sharp decline this week, now threatening to break below the rising channel support that went back to the October low of 1.0148. In fact, the break below the channel opens up that 1.0148 low. Before that however, a reversion back to the mean scenario (appropriate for a sideways market in the daily chart), can target the 200-day SMA, which is around 1.03. This is a possible first target. Only a break back above 1.05 at the moment should shelve the bearish outlook brought about by this week’s bearish action.
AUD/USD Daily Chart 12/21/2012 10:08AM EST
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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