AUD/USD (daily chart) as of October 23, 2012, has continued its fall from the 1.0400 resistance area, which was around the 50% Fibonacci retracement of the bearish run from the 1.0600 resistance region in mid-September to the 1.0150 support region in early October. The drop from 1.0400 has gone on to breakdown below the key 1.0320 intermediate support level, and has significantly accelerated its bearish push today to fall further towards a potential support retest of 1.0150. In the event that price continues its bearish stance with a further breakdown below 1.0150, AUD/USD could move towards parity (1.0000) as potential near-term support to the downside. To the upside, with any failure to stay below 1.0320, bullish resistance potentially resides once again around the 1.0400 and then 1.0600 key levels.

James Chen, CMT,
Chief Technical Strategist,
FX Solutions

Forex trading involves a substantial risk of loss and is not suitable for all investors.  FX Solutions LLC (“FXS”) is compensated through a portion of the bid/ask spread. This information is being provided only for general market commentary (based on technical analysis) and does not constitute investment trading advice.  Certain information contained herein has been obtained from sources that FXS believes to be reliable; however, FXS cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is subject to change without notice. FXS has no obligation to update any or all of such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision. Past performance is not necessarily indicative of future results. No determination has been made regarding the appropriateness of any information contained herein. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated herein. FXS expressly disclaims any loss or profits that may arise from any use of the information contained in or derived from this commentary. FXS and its affiliates may engage in transactions that are inconsistent with the views expressed herein.  FXS does not endorse nor is it responsible for any third-party posts related to this material.

For more forex information, go to