AUDUSD: Key Channel on the Verge of Caving
Strategy: Pending Short
Prices are probing through support at the bottom of a rising channel set from early June having failed to build back above the 1.05 figure. A breakdown marks a significant near-term trend reversal and initially exposes 1.0328. The 1.05 mark continues to act as relevant resistance for now, with a push above it exposing a trajectory-defining trend line set from the July 27 2011 high (now at 1.0593). We will for a close below the channel bottom to actively position for a short entry, though we remain short AUDCAD.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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