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Australian Dollar: Corrected Within Its Downtrend Channel

ByCarol Harmer
Published 05/20/2013, 07:15 AM
Updated 07/09/2023, 06:32 AM

Aussie has corrected overnight, but still within its downtrend channel which we hit at 9786. The market went to 9793 and has backed away from this resistance. Short term charts are overbought on this move higher, therefore we look set to come lower to 9733/30 once more.

There is still a case for seeing the Aussie lower overall. I still see this coming down to the weekly 50% Fib level and that is located at 9577. Now whether we can do this before a correction is the question. Please have this support in your mind however.

Now if we lose 9730 there is a high probability of the market failing to correct and coming lower down to 9683/70 which is the trend channel support.. We should see buyers in at these lows looking for the market to hold initially and unwind the oversold scenario. However below 9760 and the market will once more look to go lower.

9730 holding and we can clamber back to the 9786 trend channel resistance and this is where sellers will be evident once more. They will add to short on a break to 9840 and reverse only above here.
Australian Dollar

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