Forex Technical Update
AUD/USD 1H Chart 8/17/2012 7:40AM EDT
The AUD/USD broke above a declining trendline during the 8/17 Asian session and fell quickly immediately (after a brief double top), and is now not only breaking to a new low for August, but also cracking a key pivot at 1.0440. The RSI reading briefly broke above 60 but fell sharply back to tag 30 again, a sign of bearish momentum developing. FXStreet explains:
"The main trigger sending AUD tumbling has been Australian treasury comments. As DJN reports, AUD Treasury said "rates should be lowered if AUD too high", adding that any remote possibility of "intervention wouldn't work." The news, combined with rumours of CNY band widening, has seen AUD longs bailing themselves out of the market."
In the daily chart you can see that price action is developing a top, but is still within a rising channel. If price falls during the 8/17 US session, it should meet the channel support trendline at about 1.0380.
AUD/USD 4H Chart 8/16/2012 1:52PM EDT
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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