FXstreet.com (Barcelona) - Australian Dollar's retreat from levels around 0.9400 at year end has found support at first Fibonacci retracement level, according to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, and instead of a small head and shoulders, the pair seems to be developing a consolidation patten.

The upward trending channel from March 09 lows has remained intact, and according to Elliott, the continuation pattern aims towards parity levels: This continuation pattern has a minimum measured objective at parity, but were bullish momentum to increase to last year's record an extension to 1.0500 is likely.

On the short-term, Elliott expects sideways movement between 0.8800 and 0.9400 before rallying to higher levels: Note that trading remains within a very neat 'channel' and that all elements of the weekly Ichimoku 'cloud' chart point to a long position and the currency is no longer overbought.

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