AYD/USD: Trying To Bounce
AUD/USD has made new lows, confirming an underlying bearish trend. However, prices have thus far failed to decisively break the support at 0.8771 (25/08/2010 low). The initial resistance at 0.8829 (17/01/2014 high) has been breached. Other resistances can be found at 0.8865 (09/01/2014 low) and 0.8933 (intraday high).
The long-term technical pattern remains negative. The break under 0.8848 (05/08/2013 low) opens the way for a move towards the key support at 0.8067 (25/05/2010 low). A significant resistance is given by the 200 day moving average (around 0.9390).
The recent pullback has stopped our short strategy.