Daily Technical Update
May 21, 2010

AUD/USD Does not See Bottom


Weekly and 4H: The weekly shows a month of sharp drops in the AUD/USD pair. Last week, I noted that the market remained in consolidation and should test the support.
This week, the pair did not even care about the support at 0.86 and came down to 0.81, testing the SMA 200.
If the market close below 0.82, further decline to 0.7950 is possible. This is based on the negative reversal in the 4H chart.
We see in the weekly that the decline can extend to 0.7830, 50% retracement, and a pattern breakout target.
Fan Yang
Currency Analyst
Commodity Trading Advisor

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