AUDUSD—choppy

AUDUSD ended the NorAm session yesterday resting atop confluence after a high of 1.0022. This morning, it dropped to .9895. The pair never managed to retrace .618 of the most recent move down; last week saw a break of a major trendline; the weekly candle was bearish with its upper shadow. Unless Aussie can overcome last Thursday's high of 1.0077, the focus is on the downside.

Support is at.9804, .9690, .9612 and .9544/32. With the downward pressure, I'd expect .9993 to cap. However, keep an eye for changes upward at some point. The pair is in an overal uptrend and this could be a very limited correction. On the weekly chart, one can see how shorter trend lines continue upwards with no break yet of the weekly ones.

Here's a weekly chart:











© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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