The AUDUSD today is breaking below important long-term support as the bearish formation in the monthly and weekly chart shows.
As can be seen in the monthly chart below the AUDUSD remains in bearish trend as price continues to trade below the Ichimoku cloud and below the tenkan- and kijun-sen indicators. Price is most probably heading towards the 61.8% Fibonacci retracement support from the 2000-2009 rally whereas the same level is also the 78% Fibonacci retracement of the 2008-2009 rise.
This fx pair has tested the 0.76 several times since last March and all of the times we saw buying interest pushing prices higher and not letting it push lower. Every time this fx pair bounced traders should have used the 0.76 as a stop for their long positions, expecting an upward reversal in the longer-term trend.
The AUDUSD is in a bearish trend in all time frames and now that price is breaking below this important support of 0.76, many protective stops will be triggered. This means more heavy selling is expected to come.
As I show in the first chart of this post, the target of this bearish pattern is in the area of 0.71. So the downward potential is quite big. Any upward bounce should find resistance in the 0.76-0.77 area. I’m bearish this pair and all subscribers in my FX service have seen my sell signal from 0.77.
Thank you for taking your time to read my new post.