AUD/USD Respects Triangle Resistance; 1.0050 Is An Important Pivot

AUD/USD

- The Aussie slid today, and the 1H chart shows market action respecting the 1.0150 level (seen as triangle resistance in daily chart). The RSI developed a bearish divergence and is breaking below 40.
- This suggests a meaningful correct5ion is at hand, but we are already at the 38.2% retracement level at 1.0075. We also see 50% retracement level at 1.0050. This is an important support, with the SMA 200, as well as the resistance pivot for the consolidation on 2/17.
- The decline should not break below 1.0020, 61.8% retracement. But if the market does, and more importantly breaks below 1.0, we need to monitor the daily chart to see if the market also breaks below a triangle support.
- A break below this triangle targets 0.9536 low on 12/1/2010.
- The first target below parity however is 0.98.

Which way will the AUD/USD break? We would love to hear what you think.

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