AUDUSD Analysis – Aug 20, 2008

AUDUSD formed a sideways consolidation in a narrow range between 0.8591 and 0.8795. Further fall is expected to test 0.8512 (Jan 22 low) support after consolidation. Initial resistance is located at 0.8795 followed by 0.8890, as long as 0.8890 resistance holds, we’d expect down trend to continue.

For long term analysis, AUDUSD broke below 0.9327 key support and formed a cycle top at 0.9849 on weekly chart. Deeper decline towards 0.8400 is expected.

audusd daily chart