Forex Technical Update
The AUD/USD slid throughout the 3/29 Asian-European session. As we start the 3/29 US session, the pair is trading at the previous low at 1.0336, also testing a rising trendline that goes back to October, 2011. The 4H chart shows very persistent bearish momentum as the market tries to break open the bearish scenario.
The daily chart shows a couple of key support pivots under 1.03 and the rising trendline. If the market on a subsequent pullback respects the 200-day simple moving average in the vicinity of 1.04 (give it some elbow space), then further downside can be seen to 1.0150 and then 0.9860. The parity level could also provide some psychological support.
A confirmation of momentum would be the 4H RSI reading dipping below 30, and the daily RSI reading dipping below 40 (and eventually 30).
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Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for 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.