AUD/USD Technical Analysis for May 4, 2011

AUD/USD finally had a sharp drop in value today, and the market should be welcoming to that reality. The truth is that this pair needs to fall even further as the parabolic nature of the recent action requires it before too long. By drifting back to the 1.07 and 1.05 areas, this should set up for buying opportunities in a few days. Until then, simply observing this pair is the correct route.

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