Strategy 05 August 2013

AUD/USD break below .9000 is viewed as critical

Next downside target is .8550 – the 50% retracement of the move from 2008.

AUD/USD has a fairly dreadful week last week, it has traded below and seen a weekly close below the psychological support at .9000. Our downside target remains .8550, the 50% retracement of the move up from 2008. Our longer term downside target measured from the top is 0.7700.
We note the 13 count on the 240 minute chart and the 240 minute RSI has yet to confirm the new low – both imply some consolidation ahead of further losses. While capped by key resistance at .9388/.9405, a downside bias will persist. These are the 2011 low and highs from 2009 and 2010. The 24th July high at .9318 should also act as strong resistance.
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