AUDUSD Could Extend Deeper Based On Technical and Fundamental Outlook
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Feb 05 2013
AUD is weak today after unchanged rates decisions from the RBA members; 3.00%. However, there are speculations for further easing and possible cut on the next meeting because of inflation outlook and higher unemployment. This is the reason for weakness on AUDUSD which could extend much lower in this week. Technical outlook for the pair is also bearish after recent slow and overlapping structure in 1.0360-1.0475 range, which could be a triangle in fourth wave. Triangle is a five wave pattern that typical occurs in the middle of a larger trend, so it’s basically a continuation pattern. With that said be aware of fall through 1.0360 after completed wave (e) which is now underway up to 1.0410-1.0440 resistance.
On a daily chart we can also see a corrective advance from 1.0145 followed by a recently broken support channel line around 1.0415 (circled) which confirms the idea of a bearish trend for AUDUSD. So looking for lower levels on this pair makes sense.
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