The AUDUSD is keeping the bears in control after pushing above the trend line in early London trading and failing. The sell off has the pair moving toward the next key targeted low against a lower trend line connecting 5 recent lows. That target comes in at the 0.8821.
Technical Analysis: AUDUSD moves toward bottom trend line support.
Looking at the daily chart, the 0.8821 level is also near a support target on that chart. The lows from December 2013 came in at 0.88198 and 0.8821 on December 18 and 19th. In January, the price spent most of the month below this level (only one close above) before starting the rally higher in February.
I expect buyers against this level on the first test (this is the RISK level for buyers). The low for the day is at the 0.88346 so far. I would not look to risk a lot as the market is trending. So care is in order, but support is there to define and limit the risk.
Technical Analysis: AUDUSD approaches support at the 0.8819-21 area.
If the price does find buyers, the road back higher is not an easy climb with 0.8854-59 intraday highs and the 38.2% of the day’s trading range at the 0.8867 the targets needed to get above and stay above to call the bottom. The low from the Asian session today came in at 0.8866 which will make that area a tough nut to crack.
The 0.8854-59 and 0.8867 are the upside targets if the low is in place.
