AUD/USD: trend-line break

The aussie has broken down below a major trend-line and is continuing lower. It will probably fall even further reaching a cluster of support including the 50-day MA at around parity or 1.0005. A break below 1.0100 would be ideal for more rock-solid confirmation of further downside. Momentum has fallen since the breakout and this could indicate the possibility of a rise back up and a retouch of the underside of the trend-line at 1.0220, although after that the bearish trend is likely to resume.

Written by Forex4you