AUD/USD Classical 03.17
AUD/USD: The latest break below 0.9800 is significant and should now force a shift in the medium-term and potentially longer-term structure. The market had been very well supported by the figure over the past several weeks and this break now triggers what I have classified as an unconventional head & shoulders top that should now open an acceleration of declines initially towards 0.9500 and then towards 0.9000 further down. Markets are however extremely volatile on a shorter-term basis and as such, we would only recommend selling into rallies rather than on breaks. Scope exists for a fresh lower top somewhere around the 1.0000 handle and selling into this psychological barrier is the preferred approach. Ultimately, only back above 1.0200 gives reason for concern.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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