Previous: AUD/USD, AUD/JPY Puts in a Top, Breaks Below Key Trendline (8/24)

AUD/USD Daily Chart 8/27/2012 9:20PM EDT

The AUD/USD is breaking below a channel support seen in the daily chart. The daily chart also shows where the next key support pivot is. Around 1.0220-1.0230, we have a support pivot from the April consolidation. This level was also a resistance pivot on 6/20, adding evidence that this is a key area to monitor if the current breakout extends lower.

There is a pivot at 1.0435. Respect of this level upon a pullback strengthens the case toward 1.0220-1.0230. A break above 1.0450 makes it unclear, and a break above 1.05 is likely going to introduce the bullish continuation scenario, given it also pushes above the declining trendline seen in the 4H chart.

AUD/USD 4H Chart 8/27/2012 9:35PM EDT

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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