Forex Technical Update

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AUD/USD Daily Chart 2:38PM EDT 6/21/2012

AUD/USD

The AUD/USD failed to confirmed a recent break above a trendline that has held the 2012 decline from end of February/beginning of March.

The 6/21 US session pushed the pair below 1.01 and below a rising trendline that held June's correction rally. The 4H RSI is falling below 40, and reflects a loss of the bullish momentum established in June.

The next key level to monitor is the parity, 1.00 level. Note that parity was resistance in an ascending triangle from June 6-13. Now it will be tested as support.

If the market can stay below 1.01 on a pullback, we should have capped June's corrective rally and open up 0.9820 pivot. Below 0.98, we are looking at the 0.96-0.9630 June lows.

Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.