Prices are rebounding from support at a Rising Wedge pattern set from the early-October swing bottom but a Bearish Engulfing candlestick formation remains valid and continues to warn of forthcoming weakness. Initial resistance is at 1.0484, with a break above that exposing 1.0578 (the August 9 close). Wedge support is now at 1.0400. A drop below that aims for the 23.65 Fibonacci expansion at 1.0322. We continue to hold short.

Forex_Analysis_AUDUSD_Classic_Technical_Report_12.05.2012_body_Picture_1.png, Forex Analysis: AUD/USD Classic Technical Report 12.05.2012

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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