AUD/USD 4H Chart 8/14/2012 8:40PM EDT
The previous assessment of AUD/USD that suggested a flat correction was wrong. Instead of continuation the bullish phase, the AUD/USD is rounding a top.
The break below 1.0495 near-term support opens up the next key pivot at
1.0440. The RSI fell below 40, suggesting a loss of the
momentum seen in the latest bull run
from July 25 to August 9. Expect at least some brief support at 1.0440 as the market will be
testing a key pivot and the RSI in the 4H chart will probably be at or below 30,
reflecting a near-term oversold condition.
The market is bearish remains bearish if it can break below
1.0440, but only in the very short-term. A break below the channel support seen in the daily chart is probably needed to convince
the market of that the bull run
since the end of May is broken.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for Stock Exchanges – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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