AUD/USD Bearish Reversal Targets 1.0000

By: MIG Bank | Tue, May 8, 2012
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Achieved First Objective. Stop lowered to breakeven, thereby ensuring a risk-free trade. AUD/USD remains bearish after extending beneath its 200-day average and now targets support at 1.0000.

Our cycle analysis continues to favour further weakness into the parity level and 0.9860 (15th Dec low).

Keep in mind that such a move signals a break from the multi-month distribution pattern and its 3-year uptrend.

Only a sustained close above 1.0490 and 1.0670 would put the bearish scenario on hold and target resistance at 1.0857 (29th Feb high).

Elsewhere, the AUD/NZD is completing a counter-trend rally, which is capped beneath its 200-day average (trading at 1.2842). Key support can be found at 1.2465 and 1.2360.

AUD/JPY remains weak, weighed down by a multi-week double top pattern. Any further mean reversion beneath 81.31/15 (TDST level/200-day average), would signal more unwinding of global risk appetite capital flows.

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MIG Bank

Author: MIG Bank

MIG Bank

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
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